Question 1

High end kitchen cookware manufacturer LeCreuset's products are widely available through specialized retailers such as Bed,Bath and Beyond,and can also be found at department store chains such as Macys.However,the product is not heavily distributed through other types of retailers such as discount stores.LeCreuset's distribution strategy would be considered ________________.

Accepted Answer

A)   intensive
B)   selective
C)   exclusive
D)   dual B

Question 2

In Yemen,consumer products are primarily distributed via small,often mobil retail kiosks situated in a local souk,or town marketplace.Residential luxuries such as refrigerators are not as readily available,so food and other items are purchased on a daily basis.This scenario speaks to the dimensions of _______________ and ______________ which must be considered when establishing a foreign market distribution strategy.

Accepted Answer

A)   consumer shopping habits, outlet preferences
B)   market size, consumer distribution
C)   life cycle stage, regulations
D)   economics, education A

Question 3

Distributor partners are motivated primarily through the provision of monetary benefits such as higher commissions.

Accepted Answer

A) True 
 B)False  False

Question 4

When CCD Industries buys cleaning products from KleenRite Chemicals and resells them to the hospitality industry,they are performing a(n)____________ function.

Accepted Answer

A)   retailer
B)   wholesaler
C)   industrial agent
D)   manufacturer's representative

Question 5

In an exclusive distribution strategy,___________________________________.

Accepted Answer

A)   only a limited number of retailers have the right to sell products in their specific territories
B)   product is made available exclusively through online sales
C)   competitive products are not allowed to be sold in the same store
D)   products are sold in every available distribution outlet

Question 6

Lorenzo is assessing the internal factors that impact his channel development in the Middle East.Among other issues,he is considering _________________________________________.

Accepted Answer

A)   market penetration objectives and the financial strength of his firm
B)   local regulations
C)   consumer shopping habits and market size
D)   the stage of the product's life cycle

Question 7

The stage of the product life cycle in which your product is currently operating is one consideration in distribution strategy development.

Accepted Answer

A) True 
 B)False

Question 8

Adeena is finalizing her distribution strategy in Indonesia,and is developing statistics regarding local regulations,the competitive climate,and consumer shopping habits there.Adeena is assessing ________________________.

Accepted Answer

A)   both internal and external factors
B)   the stage of the product life cycle
C)   external factors
D)   internal factors

Question 9

Wal-Mart stores depend in large part on their suppliers to monitor Wal-Mart's inventory levels at their various distribution centers.When supplies of a particular product are diminished,it is up to the suppliers themselves to place reorders on behalf of Wal-Mart.This arrangement would reflect the cooperation found in _______________.

Accepted Answer

A)   diagonal marketing system
B)   traditional marketing system
C)   horizontal marketing system
D)   vertical marketing system

Question 10

When Greatlands Beer salespeople sell their products to consumers at holiday events and fairs across the U.K.,they are employing this type of distribution.

Accepted Answer

A)   intensive
B)   business to business
C)   indirect
D)   direct

Question 11

Intermediaries perform all of these functions except ________________________.

Accepted Answer

A)   after-sales service
B)   selling
C)   product development
D)   promotion

Question 12

Due to limited income levels in underdeveloped country markets,sales are typically made on a direct basis without the use of wholesalers in order to reduce end-user prices.

Accepted Answer

A) True 
 B)False

Question 13

When manufacturers create sales branches and offices that perform the wholesale function,they are creating a(n)______________ VMS system.

Accepted Answer

A)   corporate
B)   contractual
C)   administrative
D)   arm's length

Question 14

The intimacy of distributor relationships is more intense as the complexity of the product increases.

Accepted Answer

A) True 
 B)False

Question 15

Royal Crest Soda bottlers around the world,under contract with Royal Crest,are charged with the compounding of ingredients to produce Royal Crest products and subsequently distribute the finished goods.These bottlers are representative of ___________________ VMS.

Accepted Answer

A)   corporate
B)   contractual
C)   administrative
D)   integration

Question 16

Online purchases are typically confined to products like books and airline tickets.

Accepted Answer

A) True 
 B)False

Question 17

When Michelin taught its distributors how to promote its new line of tires based on their superior product characteristics,they exhibited the channel management practice of __________.

Accepted Answer

A)   coverage management
B)   motivational programs
C)   performance management
D)   capability-building programs

Question 18

Helga is conducting extensive research on CoreMark Construction Product Distributors in Hong Kong.She is dissecting the company's financial statements and credit ratings and reading up on CoreMark brand's influence in the marketplace.

Accepted Answer

A)   Helga is considering CoreMark as a distributor partner in Hong Kong.
B)   Helga has signed CoreMark as her new distributor in Hong Kong.
C)   Helga has decided to terminate her partnership with CoreMark in Hong Kong.
D)   Helga has recently acquired CoreMark.

Question 19

Strategic alliances and franchising agreements allow constant monitoring of sales activities abroad.

Accepted Answer

A) True 
 B)False

Question 20

In a growing economy it is expected that retail and wholesale institutions becomes larger and more specialized,while less efficient intermediaries exit the market.

Accepted Answer

A) True 
 B)False

Exam 12: Global Placement and Distribution Channels

Distributor partners are motivated primarily through the provision of monetary benefits such as higher commissions.

When CCD Industries buys cleaning products from KleenRite Chemicals and resells them to the hospitality industry,they are performing a(n) ____________ function.

In an exclusive distribution strategy,___________________________________.

Lorenzo is assessing the internal factors that impact his channel development in the Middle East.Among other issues,he is considering _________________________________________.

The stage of the product life cycle in which your product is currently operating is one consideration in distribution strategy development.

Adeena is finalizing her distribution strategy in Indonesia,and is developing statistics regarding local regulations,the competitive climate,and consumer shopping habits there.Adeena is assessing ________________________.

When Greatlands Beer salespeople sell their products to consumers at holiday events and fairs across the U.K.,they are employing this type of distribution.

Intermediaries perform all of these functions except ________________________.

Due to limited income levels in underdeveloped country markets,sales are typically made on a direct basis without the use of wholesalers in order to reduce end-user prices.

When manufacturers create sales branches and offices that perform the wholesale function,they are creating a(n) ______________ VMS system.

The intimacy of distributor relationships is more intense as the complexity of the product increases.

Royal Crest Soda bottlers around the world,under contract with Royal Crest,are charged with the compounding of ingredients to produce Royal Crest products and subsequently distribute the finished goods.These bottlers are representative of ___________________ VMS.

Online purchases are typically confined to products like books and airline tickets.

When Michelin taught its distributors how to promote its new line of tires based on their superior product characteristics,they exhibited the channel management practice of __________.

Helga is conducting extensive research on CoreMark Construction Product Distributors in Hong Kong.She is dissecting the company's financial statements and credit ratings and reading up on CoreMark brand's influence in the marketplace.

Strategic alliances and franchising agreements allow constant monitoring of sales activities abroad.

In a growing economy it is expected that retail and wholesale institutions becomes larger and more specialized,while less efficient intermediaries exit the market.