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:
Demand interference
Dealer interference
Public relations
Strategic attack
Answer:
a. Demand interference
2. In designing a global marketing channel ‘coverage’ refers to:
The extent to which revenue exceeds distribution costs
The number of foreign consumers who become aware of the firm’s products.
The number of retail outlets where the firm’s products are available
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:
The number of intermediaries of each type in the channel
The number of types of intermediaries in the channel
The number of intermediaries on each side of the national border
The number of intermediaries of each type in the foreign country
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?
Continuity
Community
Coverage
Capital
Cost
Answer:
b. Community
5. Which criteria would be useful to the firm in the selection of a foreign market intermediary?
Product experience
Network and contacts
Financial and physical resources
All of the above
(a) and (b) only
Answer:
d. All of the above
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