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Which of the following is true of the distribution process?

A)It includes the physical handling of goods.

B)It includes activities related to the promotion of goods and services.

C)The ownership title remains with the distributor even on completion of the transaction.

D)It excludes buying and selling negotiations.

E)Middlemen do not play a role in the distribution process


Which of the following statements is true regarding an import-oriented distribution structure?

A)Several independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure.

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 consumer is common.

D)These distribution systems are local rather than national in scope.

E)The marketing system develops around the philosophy of selling an unlimited supply of goods at low prices to a large number of affluent customers.


D)These distribution systems are local rather than national in scope.


_____ is a part of the relationship-oriented business philosophy that characterizes Japanese distribution channels.

A)Fast delivery

B)Direct sale

C)Friendship

D)Variety

E)Price war


C)Friendship


Which of the following statements is true of the Japanese market?

A)Japanese manufacturers are independent of wholesalers.

B)The costs of Japanese consumer goods are among the highest in the world.

C)The Japanese distribution structure supports short-term dealer–supplier relationships.

D)Large stores serve an important role for Japanese consumers.

E)Japanese consumers favor lower priced goods over personal service.


B)The costs of Japanese consumer goods are among the highest in the world.


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?

A)Toyota Motor Corporation

B)Honda Motor Company

C)Tata Motors

D)Nissan Motor Company

E)Ford Motor Company


E)Ford Motor Company


Which of the following statements is true about retail patterns?

A)Small dominant retailers can be sold to directly, but there is no adequate way to reach large retailers who handle a great volume of sales.

B)The extremes in size in retailing are drastically different from those that are observed in wholesaling.

C)Selling directly to the consumer is often the approach of choice in markets with sufficient or developed distribution systems.

D)Retailing shows greater diversity in its structure than does wholesaling.

E)Direct sales through catalogs have not proved to be a very successful way to enter foreign markets


D)Retailing shows greater diversity in its structure than does wholesaling.


The activities in a distribution channel process begin with the _____.

A)wholesaler

B)agent

C)manufacturer

D)retailer

E)consumer


C)manufacturer


Which of the following is true of agent middlemen?

A)They take title to the merchandise.

B)By using agents, the manufacturer maintains the right to establish policy guidelines.

C)They are less controllable by manufacturers than are merchant middlemen.

D)They are frequently criticized for not representing the best interests of a manufacturer.

E)They assume the risks of trading.


B)By using agents, the manufacturer maintains the right to establish policy guidelines.


Which of the following statements is true regarding merchant middlemen?

A)They take title to manufacturers" goods.

B)They are more controllable by manufacturers than agent middlemen.

C)They do not assume the risks of trading.

D)They work on commission and arrange for sales in the foreign country.

E)They represent the best interests of a manufacturer.


A)They take title to manufacturers" goods.


Companies not wanting to become immediately involved with the complexities of international marketing will most likely use the services of _____ middlemen.

A)merchant

B)agent

C)domestic

D)broker

E)credited


C)domestic


IKEA, Costco, and Sears Roebuck are examples of _____.

A)export management companies

B)trading companies

C)export associations

D)global retailers

E)complementary marketers


D)global retailers


Which of the following statements is true of an export management company?

A)It ranges in size from 100 to 250 people.

B)It works under the name of the manufacturing firm.

C)It does not have direct responsibility to the parent company.

D)It acts as a middleman for companies willing to involve their own personnel in international functions.

E)It acts as a middleman for firms with relatively large international volume.


B)It works under the name of the manufacturing firm.


_____ is one of the six Cs of distribution channel strategy.

A)Communication

B)Contribution

C)Capacity

D)Character

E)Commission


D)Character


Robert wants to export goods manufactured by his company to a new foreign market. He needs to select a middleman. He discusses the matter with some experienced exporters. Which of the following ways of selecting a middleman are they most likely to suggest?

A)Speak to the consumers of the product personally to find whom they consider to be the best distributors.

B)Issue a request-for-proposal to all distributors in the target market and evaluate their responses.

C)Consult other manufacturers of the similar products and select the distributor recommended by them.

D)Consult trade organizations and select the distributor recommended by them.

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E)Conduct a background check on all the distributors available in the target market.


A)Speak to the consumers of the product personally to find whom they consider to be the best distributors


Which of the following is involved in a physical distribution system?

A)Human accounting

B)Warehousing

C)Advertising and promotion of goods

D)Grievance handling

E)After sales services


B)Warehousing


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