Quiz

Test yourself by working through the chapter quiz.

1. One of the actions that firms can take against the gray trade is to educate consumers about the dangers of gray traded products. This is referred to as:

  1. Demand interference
  2. Dealer interference
  3. Public relations
  4. Strategic attack

Answer:

a. Demand interference

2. In designing a global marketing channel ‘coverage’ refers to:

  1. The extent to which revenue exceeds distribution costs
  2. The number of foreign consumers who become aware of the firm’s products.      
  3. The number of retail outlets where the firm’s products are available
  4. Number of distributors who are profitable in a given territory

Answer:

c. The number of retail outlets where the firm’s products are available

3. In designing a global marketing channel one should be concerned with channel length. This refers to:

  1. The number of intermediaries of each type in the channel
  2. The number of types of intermediaries in the channel
  3. The number of intermediaries on each side of the national border
  4. The number of intermediaries of each type in the foreign country
  5. None of the above

Answer:

b. The number of types of intermediaries in the channel

4. Which of the following is NOT part of the 11 Cs of international channel design?

  1. Continuity
  2. Community
  3. Coverage
  4. Capital
  5. Cost

Answer:

b. Community

5. Which criteria would be useful to the firm in the selection of a foreign market intermediary?

  1. Product experience
  2. Network and contacts
  3. Financial and physical resources
  4. All of the above
  5. (a) and (b) only

Answer:

d. All of the above