Deck 12: Global Marketing Channels and Physical Distribution

Question 1

In less-developed countries the most important channel of distribution is:

A)door to door.
B)public marketplaces.
C)wholesale marketplaces.
D)pyramid schemes.
E)retail stores.

Answer 1

B

Question 2

Which of the following most accurately describes the relative length of consumer and industrial distribution channels?

A)Consumer channels tend to be longer (consist of more intermediaries)than industrial channels.
B)Industrial channels tend to be longer (consist of more intermediaries)than consumer channels.
C)Both consumer and industrial channels tend to be long (consist of several intermediaries).
D)Both consumer and industrial channels tend to be short (consist of few intermediaries).
E)Consumer channels tend to be shorter (consist of few intermediaries)than the industrial channels.

Answer 2

A

Question 3

What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread?

A)Deliver the bread frozen.
B)Package the bread in plastic bags.
C)Convert to a paperless office to cut red tape.
D)Deliver the bread sliced rather than in whole loaf form.
E)Use paper packaging for bread.

Answer 3

B

Question 4

Peer-to-peer (p-to-p)marketing uses distribution channels through:

A)business-to-consumers.
B)electronic commerce.
C)business-to-business.
D)door-to-door.
E)manufacturer-to-wholesalers.

Question 5

Tupperware is considered as an aspirational brand that represents "moving up" in life in:

A)Romania.
B)Indonesia.
C)China.
D)Russia.
E)India.

Question 6

Which country has the biggest market for Tupperware?

A)Romania
B)Indonesia
C)China
D)Russia
E)India

Question 7

To motivate shopkeepers to stock more of P&G's products, the company launched a:

A)door-to-door program.
B)retail store program.
C)golden store program.
D)hypermarket program.
E)sole distributor program.

Question 8

E-bay pioneered a form of online commerce known as p-to-p or peer-to-peer marketing whereby individual consumers market products to other individuals.

Question 9

Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create:

A)place utility.
B)time utility.
C)form utility.
D)information utility.
E)all of the above

Question 10

eBay was a pioneer in a form of online marketing known as:

A)b-to-c.
B)b-to-b.
C)p-to-p.
D)d-to-d.
E)c-to-b.

Question 11

Legislatures in India are suspicious about Walmart's motives in going to India, since they fear the foreigners will raise prices after they have driven small operators out of business.

Question 12

The availability of the product processed, prepared, in proper condition, and/or ready to use is referred to as:

A)place utility.
B)price utility.
C)information utility.
D)form utility.
E)product utility.

Question 13

As Walmart extends its reach around the globe, observers are using words such as "assault" and "invasion" to describe what it's like for a nation that the company has fixed in its sights.

Question 14

Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except:

A)place utility.
B)price utility.
C)information utility.
D)form utility.
E)time utility.

Question 15

Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market?

A)Hewlett-Packard
B)Compaq
C)Dell
D)Acer
E)Sony

Question 16

Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility?

A)place utility
B)time utility
C)form utility
D)information utility
E)worker utility

Question 17

Sales representatives in which Japanese industry cultivate close, long-term relations with customers by selling door-to-door?

A)consumer electronics
B)pharmaceuticals
C)automobiles
D)soft drinks
E)groceries

Question 18

In exchange for a pledge to carry at least 40 different Procter & Gamble products, participating stores receive regular visits from P & G representatives who tidy and arrange display areas. This motivational program is referred to as:

A)"buy-in-bulk" store program.
B)"high-frequency" store program.
C)"mom-and-pop" store program.
D)"shop operators" program.
E)"golden store" program.

Question 19

The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products.

A)door-to-door selling
B)buy-in-bulk selling
C)mom-and-pop stores
D)franchised stores
E)manufacturer-owned stores

Question 20

In spite of Walmart's potential to transform India's retail sector for the better, Indian activists and policy makers are worried because:

A)Western-style, big-box retailing is anathema.
B)millions of shopkeepers will be out of business.
C)policy makers are suspicious of the company's motives.
D)attitude that can be traced back to the British East India company of the colonial era.
E)all of the above

Question 21

When utilizing the services of a local independent distributor, management is well advised to treat the distributor as a temporary market-entry vehicle.

Question 22

After successfully penetrating China's first-tier cities, Mary Kay expanded into second- and third-tier locations.

Question 23

Tesco made vigorous effort to penetrate the U.S. market.

Question 24

The first step in the guidelines to help newcomers in choosing a channel intermediary is to let the distributors select the business.

Question 25

In Japan, the biggest barrier facing U.S. auto manufacturers is that half the cars that are sold each year are sold door-to-door.

Question 26

It is advisable to treat local distributors as temporary market-entry vehicles.

Question 27

Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by customizing computers. Discuss the importance of channel innovation, giving examples of piggyback marketing in emerging markets.

Question 28

An exporter that is new to a particular market would do well to choose a middleman with a reputation for "cherry picking" products.

Question 29

Nestlé in Brazil is using door-to-door selling to reach low-income neighborhoods; Dell computers provides home delivery for its products; Avon is using sales representatives and other companies are using other methods to reach consumers. Describe different channels that can be used for reaching the customers.

Question 30

Apple, Levi Strauss, Nike, Sony, well-known fashion design houses, and other companies with strong brands sometimes establish flagship retail stores as a means of obtaining marketing intelligence.

Question 31

Distribution channels for automobiles in Japan and the United States are similar in that most car buyers in both countries visit dealerships before making a purchase.

Question 32

Which of the following is an appropriate guideline for companies selecting independent distributors in international markets?

A)Select distributors; don't let them select you.
B)Look for distributors capable of developing markets.
C)Treat local distributors as long-term partners.
D)Maintain control over marketing strategy from day one.
E)All of the above are appropriate guidelines.

Question 33

A distributor with good contacts may appear to be the obvious choice in terms of generating quick sales and revenues but may not be the best one. Which of the guidelines for companies selecting independent distributors is this statement referring to?

A)Select distributors; don't let them select you.
B)Look for distributors capable of developing markets.
C)Give local distributors control over marketing strategy.
D)Treat local distributors as long-term partners.
E)From the start maintain control.

Question 34

Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by building computers to customers' specifications.

Question 35

The close long-term relationships between auto salespersons and the Japanese people can be considered as a consumer version of the keiretsu system.

Question 36

Kodak adopted a direct involvement approach in Japan by utilizing independent agents, distributors, and retailers.

Question 37

When companies adopt an indirect involvement channel they have all of the following activities except:

A)utilize independent agents.
B)use distributors.
C)utilize retailers.
D)establish their own sales force.
E)utilize those who have network of stores.

Question 38

The cherry picker is most interested in developing a market for a new product, which helps an expanding international company.

Question 39

Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets?

A)Select distributors; don't let them select you.
B)Look for distributors capable of developing markets.
C)Give local distributors control over marketing strategy.
D)Treat local distributors as long-term partners.
E)All of the above are appropriate guidelines.

Question 40

A distributor with good contacts is the best one to select in terms of generating quick sales and revenues.

Question 41

Which of the following statements is not correct?

A)Walmart pulled out of Germany and South Korea.
B)Best Buy closed several stores in China.
C)Home Depot pulled out of China.
D)Mattel closed its flagship Barbie store in Shanghai.
E)Tesco shut down Fresh & Easy stores in the United States.

Question 42

Companies entering emerging markets for the first time must exercise particular care in choosing a channel intermediary. Generally, a local distributor is required. What are some of the guidelines that should be considered in selecting a distributor in order to avoid any problems?

Question 43

Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing?

A)few product categories, own-label focus
B)few product categories, manufacturer brand focus
C)many product categories, own-label focus
D)many product categories, manufacturer brand focus
E)none of the above

Question 44

Channel decisions are important because:

A)commitments are flexible.
B)relationships change with time.
C)it is expensive to terminate.
D)issues can be solved by arbitration.
E)local laws do not protect agreements.

Question 45

Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores?

A)few product categories, own-label focus
B)few product categories, manufacturer brand focus
C)many product categories, own-label focus
D)many product categories, manufacturer brand focus
E)none of the above

Question 46

When Walmart stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Walmart used, management must have viewed Mexico as:

A)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.

Question 47

Which of the following is the largest retailer in the world in terms of annual sales according to the top five global retailers, 2012?

A)Sears
B)Metro
C)Kmart
D)Carrefour
E)Walmart

Question 48

Which of the following does not qualify as a "category killer?"

A)Victoria's Secret
B)IKEA
C)Home Depot
D)Circuit City
E)Toys "R" Us

Question 49

By definition, ________ feature a narrow but deep merchandise mix and high levels of service.

A)department stores
B)specialty retailers
C)supermarkets
D)convenience stores
E)discount stores

Question 50

Departmentalized, single-story retail establishments that offer food and nonfood items, mostly on a self-service basis are called:

A)Specialty retailers.
B)Supermarkets.
C)Convenience stores.
D)Discount retailers.
E)Hyper markets.

Question 51

When devising a channel strategy, it is necessary to be realistic about the intermediary's motives. What is "cherry picking" and how does it affect careful selection of a channel strategy?

Question 52

When Walmart entered the German market, ________ were already entrenched.

A)Specialty retailers
B)Discount retailers
C)Hard discounters
D)Hypermarkets
E)Supermarkets

Question 53

Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?

A)few product categories, own-label focus
B)few product categories, manufacturer brand focus
C)many product categories, own-label focus
D)many product categories, manufacturer brand focus
E)none of the above

Question 54

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?

A)organic growth
B)chain acquisition
C)franchise
D)joint venture
E)own-label focus

Question 55

Where in the axis that differentiates between retailers does IKEA fall?

A)quadrant A
B)quadrant B
C)quadrant C
D)quadrant D
E)quadrant E

Question 56

When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as:

A)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.

Question 57

All of the following stores are categorized as "superstores" except:

A)Toys "R" Us.
B)Home Depot.
C)IKEA.
D)Babies "R" Us.
E)The Body Shop.

Question 58

Dollar stores are classified under:

A)Convenience stores.
B)Specialty retailers.
C)Discount retailers.
D)Hard discounters.
E)Category killers.

Question 59

"Nakumatt" is a supermarket chain in:

A)Kenya.
B)India.
C)Japan.
D)Korea.
E)Indonesia.

Question 60

"Organized retail" is a term used to describe:

A)modern chain stores.
B)grocery stores.
C)local retail chains.
D)supermarkets.
E)hypermarkets.

Question 61

Swedish furniture retailer IKEA pulled meatballs from its cafeterias and grocery sections in several countries after food inspectors found some samples that contained horse meat.

Question 62

The entry global retailing market expansion strategies include all of the following except:

A)franchise.
B)chain acquisition.
C)departmental stores.
D)joint ventures.
E)organic.

Question 63

Japanese retailers traditionally offered few extra services to clientele; their stock was chosen not according to consumer demand but, rather, according to purchasing preferences of the stores.

Question 64

Walmart pulled out of Germany; Best Buy closed several stores in China. These examples illustrate that it is not possible to export a retail business model that has proven successful in the domestic market.

Question 65

Laura Ashley, The Body Shop, Victoria's Secret, Starbucks, the Disney Store and Gap are examples of global retail operators that can be classified as specialty retailers since they offer less variety than department stores.

Question 66

Today, "conbinis" are ubiquitous in Japan, with more than 43,000 store locations.

Question 67

Hypermarkets are a hybrid retailing format combining the discounter, supermarket, and warehouse club approaches under a single roof.

Question 68

Walmart's international expansion in the mid-1990s coincided with disappointing financial results in its home market.

Question 69

The reason why Saks Fifth Avenue has licensed stores in the Middle East is to limit their risk when targeting unfamiliar, difficult-to-enter markets.

Question 70

A variety of environmental factors have combined to push retailers out of their home markets in search of opportunities around the globe. All of the following reasons are responsible for such a move except:

A)saturation of the home-country market.
B)a recession in the home-country.
C)strict regulation on store development.
D)high operating costs.
E)high population growth.

Question 71

The world's five largest malls are in Asia.

Question 72

When British entrepreneur Richard Branson opened the first Virgin Megastore in Japan, he did so by establishing a joint venture with the Marui retailing chain. This represents an inappropriate market-entry approach for a global retailer.

Question 73

Germany's Aldi and Lidl ("Where quality is cheaper!")and France's Leader Price ("Le Prix La Qualité en Plus!")are among the most popular discount retailers.

Question 74

When Carrefour, Tesco, or Walmart set up shop in developing countries, they provide customers with access to more products but at higher prices than were available previously. This is an example of global retailing.

Question 75

Selfridge fell victim to various demons and vices and was ousted from the company he had founded.

Question 76

Retailers may have a difficult time crossing borders if they fail to appreciate similarities in retailing environments, and consumer behavior and preferences.

Question 77

Nakumatt, is a supermarket chain in Kenya, where people go to show that they are educated and prosperous and cognizant of larger affairs.

Question 78

How do specialty retailers differ from "hypermarkets," "supercenters," and "convenience stores"? Why are some businesses called "category killers"?

Question 79

Saks Fifth Avenue has ________ stores in the Middle East.

A)licensed
B)organic
C)franchise
D)joint venture
E)own-label focus

Question 80

When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as:

A)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.