Question 1

The first step in becoming a global franchisor is to have a well-established and successful operation in a home market.

Accepted Answer

A) True 
 B)False  True

Question 2

Door-to-door selling is a relatively inexpensive form of distribution that requires low gross margins.

Accepted Answer

A) True 
 B)False  False

Question 3

Companies sometimes establish retail outlets as a means of obtaining marketing intelligence rather than as a distribution strategy.

Accepted Answer

A) True 
 B)False  True

Question 4

Termination can result in legal expenses.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is often the most effective and the only feasible way for a company to establish itself in a new market?

Accepted Answer

A)   by setting up a direct sales force
B)   by approaching a company producing substitute products
C)   by providing special incentives to wholesalers
D)   by providing special incentives to retailers

Question 6

When entering Japan, it is recommended that foreign companies offer better quality, lower price, or a distinctive positioning as a foreign product.

Accepted Answer

A) True 
 B)False

Question 7

A disadvantage to manufacturers for using a distributor's sales force is that it generally tends to increase costs.

Accepted Answer

A) True 
 B)False

Question 8

The low cost of a direct sales force acts as an incentive for establishing direct distribution in a new market.

Accepted Answer

A) True 
 B)False

Question 9

________ refers to the coordination of production and distribution across markets.

Accepted Answer

A)   Horizontal integration
B)   Logistical integration
C)   Vertical integration
D)   Location intelligence

Question 10

Two of the most important clauses in a distributor contract are the performance and cancellation clauses.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following aids in indirect marketing?

Accepted Answer

A)   wholesalers
B)   manufacturer-owned stores
C)   mail-order selling
D)   door-to-door selling

Question 12

How are industrial products distributed?

Accepted Answer

The answer of How are industrial products distributed?...

Question 13

Street vendors are considered distribution channels.

Accepted Answer

A) True 
 B)False

Question 14

The larger a market, the less feasible it is for a manufacturer to use its own sales force to distribute industrial products.

Accepted Answer

A) True 
 B)False

Question 15

Direct involvement as a channel strategy requires incentives to be paid to independent channel agents.

Accepted Answer

A) True 
 B)False

Question 16

Middlemen are in business to maximize their own profit and not that of the manufacturer.

Accepted Answer

A) True 
 B)False

Question 17

The process of disintermediation in the global distribution system has been declining at a steady rate.

Accepted Answer

A) True 
 B)False

Question 18

A ________ is an organized network of agencies and institutions which, in combination, perform all the activities required to link producers with users to accomplish the marketing task.

Accepted Answer

A)   fulfillment house
B)   demand signal repository
C)   general line of merchandise
D)   channel of distribution

Question 19

The degree of standardization of a product has no influence on channel design and strategy.

Accepted Answer

A) True 
 B)False

Question 20

The world's best-known franchises are ________.

Accepted Answer

A)   advertising agencies
B)   travel agencies
C)   hotel chains
D)   fast-food chains

Exam 12: Global Marketing Channels

The first step in becoming a global franchisor is to have a well-established and successful operation in a home market.

Door-to-door selling is a relatively inexpensive form of distribution that requires low gross margins.

Companies sometimes establish retail outlets as a means of obtaining marketing intelligence rather than as a distribution strategy.

Termination can result in legal expenses.

Which of the following is often the most effective and the only feasible way for a company to establish itself in a new market?

When entering Japan, it is recommended that foreign companies offer better quality, lower price, or a distinctive positioning as a foreign product.

A disadvantage to manufacturers for using a distributor's sales force is that it generally tends to increase costs.

The low cost of a direct sales force acts as an incentive for establishing direct distribution in a new market.

________ refers to the coordination of production and distribution across markets.

Two of the most important clauses in a distributor contract are the performance and cancellation clauses.

Which of the following aids in indirect marketing?

How are industrial products distributed?

Street vendors are considered distribution channels.

The larger a market, the less feasible it is for a manufacturer to use its own sales force to distribute industrial products.

Direct involvement as a channel strategy requires incentives to be paid to independent channel agents.

Middlemen are in business to maximize their own profit and not that of the manufacturer.

The process of disintermediation in the global distribution system has been declining at a steady rate.

A ________ is an organized network of agencies and institutions which, in combination, perform all the activities required to link producers with users to accomplish the marketing task.

The degree of standardization of a product has no influence on channel design and strategy.

The world's best-known franchises are ________.