Question 1

In deciding on the firm's distribution strategy in the United Kingdom,Arlene Smith of Wendell Products found that the country's retail sector was very concentrated.When the retail sector is very concentrated

Accepted Answer

When the retail sector is very concentrated, it makes sense for a firm to deal directly with retailers, cutting out wholesalers. This is because dealing with a concentrated retail sector can reduce the number of intermediaries needed to reach the end consumer, thereby reducing costs and increasing efficiency. Directly dealing with retailers can also give a firm more control over its products' pricing, placement, and promotion.

Question 2

Cassidy Boeheim,the international sales manager for Knoll Home Products is trying to determine the channel length for Brazil,a market that the company hopes to enter.Which of the following is the most important determinant of channel length?

Accepted Answer

The degree to which the retail system is fragmented is the most important determinant of channel length. This factor affects the number of intermediaries required to reach customers and the length of the channel. In a fragmented retail system, more intermediaries are needed, and the channel is longer, leading to higher costs and potentially lower profits. Therefore, understanding the degree of fragmentation in Brazil's retail system is critical in determining the appropriate channel length.

Question 3

Algonquin Cosmetics markets skin care products for teenage girls between sixteen and nineteen.In approaching its international markets,Algonquin believes that its target segment spans multiple countries,transcending national borders.Algonquin Cosmetics' target segment is called a(n)_____ segment.

Accepted Answer

An intermarket segment refers to a group of consumers who have similar needs and buying behaviors across different countries, which aligns with Algonquin's belief that their target segment transcends national borders.

Question 4

The Jacoby Winery from California's Sonoma Valley requires its retailers to educate customers about wines and help them make the right choice from a large array of brands.This is particularly more so in international markets,because American wines are relatively less well-known abroad._____ refers to the expertise,competencies,and skills of established retailers in a nation,and their ability to sell and support the products of international businesses.

Accepted Answer

Channel quality refers to the expertise and capabilities of retailers in selling and supporting the products of international businesses. In this case, the Jacoby Winery requires retailers to educate customers about their wines and help them make the right choice, indicating the importance of channel quality in international markets for American wines.

Question 5

The number of intermediaries between the product (or manufacturer)and the consumer is referred to as

Accepted Answer

Channel length refers to the number of intermediaries between the product (or manufacturer) and the consumer. Choices B, C, D, and E are all related concepts but do not directly address the number of intermediaries.

Question 6

Which of the following is a characteristic of fragmented retail systems?

Accepted Answer

Fragmented retail systems typically have long channels of distribution, which means there are more intermediaries between the manufacturer and the final consumer. This leads to inefficiencies and higher costs.

Question 7

The developing country of Nambodia has a retail system that has many independent retailers,no one of which has a major share of the market.What is Nambodia's retail system called?

Accepted Answer

Nambodia's retail system is called a fragmented retail system, as there are many independent retailers and no one has a major share of the market.

Question 8

Which of the following contradicts Theodore Levitt's arguments for the globalization of world markets?

Accepted Answer

Theodore Levitt argued that the globalization of world markets would lead to standardization of tastes and preferences, and consumers would sacrifice preferred attributes for lower prices. Option A contradicts this argument by stating that consumers in most developed countries do not sacrifice preferred attributes for lower prices, indicating that there is no universal standardization of consumer preferences.

Question 9

The United States has a very concentrated retail market with a few large national chains dominating the market.Which of the following is a factor that has contributed to greater retail concentration in a developed country like the United States?

Accepted Answer

The increase in car ownership has contributed to greater retail concentration in developed countries like the United States. This is because people are no longer limited to shopping at stores within walking distance of their homes, and can easily travel to larger stores located further away. This enables larger national chains to operate in more locations and gain a larger market share.

Question 10

What occurs when the retail sector is very concentrated?

Accepted Answer

When the retail sector is very concentrated, it makes sense for a firm to deal directly with retailers and cut out wholesalers. This is because the concentration of retailers means that there are fewer retail outlets to deal with, making it easier and more cost-effective for a firm to reach them directly. This can also result in shorter channels of distribution and reduce the need for a large sales force.

Question 11

Algonquin Cosmetics is deciding on its marketing mix to enter Brazil.It is deciding on the means for delivering the product to the consumer.What strategy is Algonquin Cosmetics working on?

Accepted Answer

Distribution strategy concerns the means by which the product is delivered to the consumers. Algonquin Cosmetics is focusing on this aspect to enter the Brazilian market. Therefore, the best choice is B.

Question 12

The sales manager for Smith Exports is deciding on the firm's distribution strategy in several markets.He wants to know which factor is likely to shorten channel length in a particular country.Which of the following factors helps a firm shorten channel length?

Accepted Answer

The entry of large discount superstores is likely to shorten the channel length as they often bypass intermediaries and deal directly with manufacturers, thereby reducing the number of intermediaries involved in the distribution process.

Question 13

When Algonquin Cosmetics looked at entering the Brazil market,it noticed that a few retailers supplied most of the market.What kind of a retail system does Brazil have for the products that Algonquin Cosmetics is trying to sell?

Accepted Answer

Brazil has a concentrated retail system where a few key retailers dominate the market. This means that Algonquin Cosmetics will need to have strong relationships with these retailers in order to successfully enter the market.

Question 14

Gundogan Food Products is hoping to enter Maurinia,a developed country.They want to have a good understanding of consumer preferences in that country.Which of the following is true of the influence of economic development on consumer preferences?

Accepted Answer

Economic development has been shown to positively influence consumers' willingness to pay for additional features or benefits that are personalized to their tastes. As countries become more developed, consumers become more sophisticated and discerning, and may require products that offer better quality or more customized features. Thus, Gundogan Food Products should consider investing in research and development to create products that cater to the specific tastes and preferences of Maurinian consumers.

Question 15

Cassidy Boeheim,the international sales manager for Knoll Home Products found that Brazil has a long distribution channel.Upon investigation,she found that this was caused by a large number of wholesalers who entered the market to serve retailers.Which kind of retail systems tend to promote the growth of wholesalers to serve retailers,which lengthens distribution channels?

Accepted Answer

Fragmented retail systems tend to promote the growth of wholesalers as there are a large number of small retailers operating independently, which makes it difficult for manufacturers to serve them directly. Wholesalers act as intermediaries between manufacturers and retailers, thus lengthening the distribution channels.

Question 16

_____ can constrain the globalization of markets.

Accepted Answer

Differences in technical standards can create barriers to entry for foreign companies and restrict globalization of markets. For example, different countries may have different safety standards for products, or use different electrical plugs and sockets, which can make it difficult for companies to sell their products in foreign markets. This can result in economies of scale being limited to a certain extent, preventing the full globalization of markets.

Question 17

Which of the following is the most important determinant of channel length?

Accepted Answer

The degree to which the retail system is fragmented is the most important determinant of channel length because a fragmented retail system typically requires longer channels to reach the end consumer, as there are more intermediaries involved.

Question 18

Which of the following is a factor that contributes to greater retail concentration in developed countries?

Accepted Answer

The presence of refrigerators and freezers allows for households to store perishable goods for longer periods of time, thereby reducing the need for frequent trips to the grocery store. This creates a larger market for larger retail chains that can offer wider selections and lower prices due to economies of scale, leading to greater retail concentration.

Question 19

Which of the following is true about channel quality?

Accepted Answer

Emerging markets and less developed nations often have inconsistent and unreliable supply chains due to poor infrastructure and limited resources, resulting in varying levels of channel quality.

Question 20

The Jacoby Winery from California's Sonoma Valley is trying to enter the wine market in France.To the company's surprise,it found the France wine distribution channel difficult to access as an outsider.Which kind of distribution channel is difficult for outsiders to access?

Accepted Answer

Exclusive distribution channels limit the number of intermediaries and are often difficult for outsiders to access due to established relationships and agreements.

Quiz 16: Global Marketing and Research and Development