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Multiple

Which of the following is true of the distribution process?

Choice

A. It does not involve the physical handling and distribution of goods.

QuestionsB. It includes activities related to the promotion of goods and services.
1.

C. The ownership title remains with the distributor even on completion of the transaction.
D. It includes buying and selling negotiations.
E. The behavior of channel members is not affected by the cultural environment.

2.

In a _____ 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. domestic
B. traditional
C. manufacturer-oriented
D. service
E. customer-oriented

3.

Which of the following statements is true of a traditional distribution structure?
A. The distribution system is national in scope.
B. The relationship between the importer and any middleman is similar to that found in a
mass-marketing system.
C. The idea of a channel as a chain of intermediaries performing specific activities and each
selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common.
D. Independent agencies providing functions such as advertising, marketing research, and
financing are a part of this distribution structure.
E. The marketing system develops around the philosophy of selling a limited supply of goods
at high prices to a small number of affluent customers.

4.

Which of the following distribution structures is also known as a traditional distribution
structure?
A. Export-oriented
B. Import-oriented

15-1

Service-oriented E. The Japanese population B. financing are a part of this distribution structure. _____ are considered to be the foundation of the Japanese distribution system. D. Small retailers E. Wholesalers 8. Which of the following characterizes the business philosophy of the Japanese distribution channels? A. The idea of a channel as a chain of intermediaries performing specific activities is common. A. Manufacturers D. Direct sales 15-2 . Manufacturer-oriented D. _____ has long been considered the most effective nontariff barrier to the Japanese market.C. Consumers B. Several independent agencies providing functions such as advertising. C. Customer-oriented 5. B. E. The importer–wholesaler traditionally performs most of the marketing functions. This distribution system is national in scope. marketing research. The Japanese distribution structure C. Intense competition in Japan 7. Japanese culture D. The Japanese import and export procedure E. A. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. Which of the following statements is true regarding an import-oriented distribution structure? A. Brokers C. 6. Loyalty B.

Fast delivery D. all proposals for new “large” stores are first judged by the _____. Clean business reputation. The Japanese distribution structure supports long-term dealer–supplier relationships. Outreach programs to placate small retailers. C. Japanese consumers favor price over personal service. The costs of Japanese consumer goods are among the lowest in the world. In Japan. 12. Japanese law favors the establishment of large retail stores. Internal Affairs and Business Council C. D. Ability to beat competitors. Ability to influence foreign governments. C. Transport and Tourism Department B. A. under the Large-Scale Retail Store Law. Ministry of International Trade and Industry D. Variety E. Price competition 9. General Motors. Internal Internet-based system. E. Local Retailers Union 11. and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers. Toyota Motor Corporation 15-3 . E. In the international business arena. Which of the following statements is true of the Japanese market? A. _____.C. A. B. B. 10. D. Health and Welfare Committee E. which of the following is considered to be one of Walmart’s strengths? A. Manufacturers are independent of wholesalers for a multitude of services to other members of the distribution network.

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. Tata Motors 13. 15-4 . population growth D. Nissan Motor Company E. the rate of change in retailing around the world appears to be directly related to the _____. Honda Motor Company C. China D. Argentina C. speed of economic development E. A. Internet selling D.B. United States B. A big wholesale store C. Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system? A. South Africa E. Which of the following countries has the largest number of retailers? A. rate of inflation C. A discount house E. currency exchange rate 15. Direct sales through catalogs. In the context of distribution patterns. Ford Motor Company D. A. Japan 14. Television advertising 16. literacy rate B. Direct marketing B.

Television advertising. They take title to the merchandise. 17. The distribution channel process includes all activities.B. Large wholesale stores. _____ take title to manufacturers’ goods and assume the trading risks. Merchant middlemen E. beginning with the manufacturer and ending with the _____. Merchant middlemen B. Which of the following are frequently criticized for not representing the best interests of a manufacturer? A. agent middlemen C. D. B. Internet shopping. Buying offices D. Brokers 18. wholesaler B. Consumers D. Street corner kiosks. Brokers C. Global wholesalers B. final consumer 20. merchant middlemen D. Export agent E. retailer E. A. A. They work on commission and arrange for sales in the foreign country. C. Agent middlemen 19. 15-5 . Trading companies C. E. Which of the following statements is true regarding agent middlemen? A.

D. the limited number of retailers in the foreign country who can be reached through the homecountry middlemen. area B. They assume trading risks. the limited control over the entire distribution process. A disadvantage when using home-country middlemen as intermediaries in the distribution process is: A. E. B. Manufacturers cannot control them as they control merchant middlemen. 22. C. E. the limited control over the distribution process. C. They do not take title to manufacturers’ goods. local C. D. They can be controlled better than agent middlemen. They work on commission and arrange for sales in the foreign country. the large managerial investments required. Which of the following statements is true regarding merchant middlemen? A. the large financial investment required. the large amount of commission charged by the home-country middlemen. E. They do not represent the best interests of the manufacturer. Home-country middlemen are also known as _____ middlemen. C. B. 24. A major trade-off when using home-country middlemen is: A. They assume trading risks. A. D. the large managerial investments required. the large amount of commission. 21. D. merchant 15-6 . the large financial investment required. They represent the best interests of a manufacturer. the limited number of retailers in the foreign country who can be reached.C. E. B. 23.

It acts as a middleman for firms with relatively large international sales volume. the middleman must be able to provide information on financial. Barker if he wants to meet his objectives? A. A manufacturer’s export agent. regional 25. domestic E. C. An export merchant. E. C. E. Also. It acts as a middleman for firms willing to involve their own personnel in international functions. 27. A complementary marketer. Walmart C. An export management company. credit arrangements. A trade representative. patent. Toys “R” Us B. It calls for a minimum investment from the parent firm to get into international markets. In addition. Which of the following types of middlemen would be the best choice for Mr. Costco D. and licensing matters. It does not have direct responsibility to the parent firm. 15-7 . and market research. Which of the following statements is true regarding an export management company (EMC)? A.D. the middleman should agree to work under the name of the firm. B. physical handling. D. IKEA 26. It operates under its own name while providing services to another firm. Benetton E. B. James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company’s products. D. which of the following is an example of a manufacturer’s retail store? A. In the context of the different types of middlemen.

28. E. E. For companies seeking entrance into the complicated Japanese distribution system. complementary marketers 29. To remove antitrust disincentives to export activities. trading companies C. B. C. complementary marketers 30. export management companies E. 31. C. Using the services of an export management company. Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year? A. _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan. A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products. import associations D. brokers D. Establishing a retail store. global retailers E. To bypass trade barriers in foreign countries. To allow U. D.S. Which of the following was a goal of the Export Trading Company Act? A. D. To combine export shipments within single containers. B. trading companies C. companies to bypass tax laws with respect to international trading. Complementary marketing. trade representatives B. Using the services of a trading company. 15-8 . A. To earn the highest possible profits in foreign countries. Price skimming. A. export management companies B.

demand shifting. global retailer D. shape shifting E. piggybacking D. B. A. has a short-term relationship. demand shifting C. manufacturers’ retail store B.32. export management company C. A. A _____ provides a selling service for a manufacturer. Complementary marketing is commonly known as _____. skimming 33. C. A. trading company C. D. and operates on a straight commission basis. A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets. global retailer E. The formal name for this type of marketing is: A. complementary marketer B. export marketing. backhauling B. manufacturer’s export agent 15-9 . skimming. 34. Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. E. Webb-Pomerene export association D. manufacturer’s export agent 35. backhauling. complementary marketing.

Sole proprietors. B. A(n) _____ is a domestic middleman set up in a foreign country or U. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. A. E. The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts? A. Webb-Pomerene export association B. C. B. In the context of types of domestic middlemen. The Trade Commission Act. C. thus starting a major trade dispute with the European Union. complementary marketer 36. complementary marketer E. and Cosmetics Act. D.S. A. The Food. E.E. the WTO in 2003 ruled _____ to be in violation of international trade rules. The Federal Communications Act. 37. export management company D. D. manufacturer’s export agent C. Which of the following is a type of domestic middleman? A. Joint ventures. foreign sales corporation 38. foreign sales corporations B. Lessors. Foreign distributors. direct marketing partnerships C. trading companies 15-10 . The Sherman Antitrust Act. The Robinson-Patman Act. Export Management Companies. 39. Drug.

Which of the following factors affects the choice of distribution channels? A. D. volume discounts and rebates C. Commission E. They can function as a principal or a commissioned agent. C. A. E. Contribution 43.D. export promotion companies E. Which of the following is true of foreign sales corporations? A. Consumer literacy levels. Webb-Pomerene export associations 40. Distance from manufacturer. E. the selection of optimum container sizes B. 41. Country’s per capita income. They are commonly called piggybackers. and distribute goods from many countries. D. Available distribution intermediaries. Continuity C. Capacity D. the local advertising modes E. B. 42. the target market culture 15-11 . transport. one of the key elements in distribution decisions includes _____. B. They accumulate. Language spoken in the target market. the functions performed by middlemen D. C. They virtually control distribution through all levels of channels in Japan. Communication B. Which of the following is one of the six Cs of distribution channel strategy? A. In the context of factors affecting choice of channels. They can only be related to a manufacturing parent and not an independent broker.

46. B. D. Mode of transportation for moving goods. Money required for the transportation of goods. Export management companies. Complementary marketers. C. 47. B. 15-12 . Knowledge of the culture of the target market. Export management companies. Cash-flow patterns. D. E. Export associations. Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical? A. C. Direct sales force. Cost of local advertising. In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment? A. Complementary marketers. Direct sales force. Trading companies.44. C. Influence over the target market. Trading companies. D. C. Which of the following is a critical element associated with using a particular type of middleman? A. Capital required to maintain effective distribution. B. Export associations. E. Which of the following is one of the highest costs of doing business in China? A. 45. E. Cost of customizing products for the Chinese market. Money required for obtaining appropriate permits. B. E. Number of employees. D.

Breadth of knowledge 51. This is an example of problems associated with which of the following six Cs of distribution channel strategy? A. Hypersensitivity C. _____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a market. Character B. A. Productivity E. tend to slow down distribution to extract higher commissions E. Most middlemen have little loyalty to their vendors. Capital requirement 49. lack product knowledge resulting in low sales volume C.48. Studying the target market. A. do not maintain sufficient inventory to serve customers B. Short listing the middlemen. B. Flexibility B. Which of the following actions should be taken to begin with the search for prospective middlemen? A. Cultural empathy D. Continuity C. Control D. One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____. do not have sufficient knowledge of the target market 50. have little loyalty to their vendors D. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. 15-13 . Cost E.

B.C. was diverting some of their goods to the English market. consult other manufacturers of the similar products and select the distributor recommended by them. This is an example of problems associated with which of the following six Cs of channel strategy? A. 52. Apex Corporation is a wholesaler for Global Electronics in the French market. Continuity C. Capital requirement 55. Most middlemen have little loyalty to their vendors. E. C. to issue a request-for-proposal to all distributors in the target market and evaluate their responses. Cost E. D. B. consult trade organizations and select the distributor recommended by them. Understanding the mission of the manufacturing firm. 54. which of the following forms of business is Apex engaged in? A. Designing the sales force required. Black marketing. to personally talk to ultimate consumers to find whom they consider to be the best distributors. Evaluating the available financial resources. Control D. In the context of the above scenario. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. Parallel importing. Character B. Global Electronics discovered that Apex Corp. Experienced exporters suggest that the only way to select a middleman is: A. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. E. to conduct a background check on all the distributors available in the target market. D. Apex Corp. 15-14 .

mass E. Backwashing. dual D. Industrial piracy. A. A. A. In the context of the Internet in international marketing channels. Brazil C. E-commerce is more developed in _____ than the rest of the world. e-commerce is a form of _____ selling. the United States B. A. China B. D. black marketing C. South Africa E. direct B. the color red is associated with socialism in _____. technically. Switzerland D. In the context of cultural reactions when engaging in e-commerce. E. the United States 58. backwashing D. smuggling 57. In the context of controlling middlemen. targeted 59. Smuggling. industrial piracy E. secondary wholesaling B. 56.C. parallel C. parallel importing is also known as _____. partly because of the lower cost of access to the Internet than found elsewhere. China 15-15 .

A decision involving an activity has no impact on the cost and efficiency of one or all others. B. It includes transportation mode. Which of the following is true of a physical distribution system? A. It is a total systems approach to the management of the distribution process. inventory quantities. D. Uruguay E.C. Brazil D. 15-16 . It excludes the interdependence of the costs of each activity. Spain 60. and packing. C. It involves only the physical movement of goods. E.