International Marketing Distribution Channels
Chapter 15: Global Distribution Systems
International Distribution Structures
1. In this 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. Identify the distribution structure in the discussion?
Answer: Import-oriented
The Japanese Market and Retail Systems
2. A(n) _____ is the foundation of the Japanese distribution system?
Answer: Small retailer
3. Which of the following has long been considered the most effective nontariff barrier to the Japanese market?
Answer: Distribution in Japan
Digital Collaboration and Middlemen
4. Three automobile companies have created a single online site called Covisint (www.covisint.com) for purchasing automotive parts from suppliers, which is expected to save the companies millions of dollars. Which of the following is one of these three companies?
Answer: Ford Motor Company
5. _____ are frequently criticized for not representing the best interests of a manufacturer?
Answer: Merchant middlemen
Channel Dynamics and Agent Roles
6. Activities in a distribution channel end with a _____?
Answer: Final consumer
7. Agent middlemen:
Answer: Work on commission and arrange for sales in the foreign country.
Home-Country Middlemen and Selection Strategies
8. Which of the following represents a major trade-off when using home-country middlemen?
Answer: The limited control over the entire distribution process
9. _____ will most likely use the services provided by a home-country middleman.
Answer: Companies which want to sell abroad with minimum financial commitment
10. Samantha wants to sell a small percentage of the goods produced by her company in a foreign market. She is looking for a middleman who can take responsibility for promotion of the goods, credit arrangements, physical handling, and market research, provide information on financial, patent, and licensing matters, and work under the name of her company. Which of the following would be the best choice for Samantha if she wants to meet her objectives?
Answer: An export management company
11. Robert wants to export goods manufactured by his company to a foreign market which is new to his company and for this he wants to select a middleman. He discusses this issue with some experienced exporters. Most likely, which of the following ways of selecting a middleman will be suggested to Robert by the experienced exporters?
Answer: Personally talk to ultimate users of your product to find whom they consider to be the best distributors.
Motivation, Parallel Imports, and E-commerce
12. Which of the following techniques of motivating middlemen works best when cultural distances are great?
Answer: Communication
13. When a company's goods intended for one country are diverted through distributors to another country, where they compete with existing retail or wholesale organizations, it is known as _____.
Answer: Parallel importing
14. Technically, e-commerce is considered to be a form of _____.
Answer: Direct selling
15. All of the following are involved in a physical distribution system EXCEPT:
Answer: Advertising and promotion of goods.