60) Using examples, explain the circular process of marketing communication.
61) Describe the five communication strategies that companies commonly use and cite situations
where the strategies are used.
62) Briefly discuss the effects of globalization on international marketing activities and explain
how a dual adaption method works as a promotional strategy.
63) Differentiate between the push and pull promotional strategies. Explain the factors that
determine whether the push or the pull strategy is appropriate in a given marketing environment.
64) The physical path a product follows on its way to customers is called a(n) ________.
A) distribution channel
B) demand chain
C) critical path
D) external value network
65) Companies along a distribution channel that work together in delivering products to
customers are called ________.
A) subsidiaries
B) intermediaries
C) value chains
D) value networks
66) Which of the following refers to planning, implementing, and controlling the physical flow
of a product from its point of origin to its point of consumption?
A) customization
B) distribution
C) communication
D) promotion
67) A distribution strategy under which a company sells through as many outlets as possible, so
that the consumers encounter the product virtually everywhere they go: supermarkets, drug
stores, gas stations, and the like is called ________.
A) intensive channel
B) exclusive channel
C) zero-level channel
D) two-level channel
68) A(n) ________ channel creates a barrier that makes it difficult or impossible for outsiders to
penetrate.
A) exclusive
B) intensive
C) selective
D) two-level
69) A(n) ________ channel gives producers a good deal of control over the sale of their product
by channel members such as wholesalers and retailers.
A) exclusive
B) intensive
C) two-level
D) selective
70) A distribution channel in which a producer grants the right to sell its product to many
resellers is referred to as a(n) ________.
A) one-level channel
B) zero-level channel
C) exclusive channel
D) intensive channel
71) A(n) ________ channel does not create strong barriers to channel entry for other producers,
nor does it provide much control over reseller decisions such as what competing brands to sell.
A) one-level
B) zero-level
C) exclusive
D) intensive
72) A(n) ________ channel provides buyers with location convenience because of the large
number of outlets through which a product is sold.
A) intensive
B) exclusive
C) one-level
D) zero-level
73) ________ refers to the number of intermediaries between producer and buyer.
A) Critical path
B) Channel length
C) Frequency
D) Value density
74) Which of the following is also known as direct marketing?
A) an intensive channel
B) an exclusive channel
C) a zero-level channel
D) a two-level channel
75) A(n) ________ channel places a single intermediary between the producer and the buyer.
A) intensive
B) exclusive
C) one-level
D) two-level
76) If Old World wants to grant the right to sell its furniture to only a limited number of resellers,
it should consider a(n) ________ channel.
A) intensive
B) exclusive
C) two-level
D) selective
77) If Old World wants to have its furniture sold through as many distribution outlets as possible,
it should consider a(n) ________ channel.
A) exclusive
B) intensive
C) one-level
D) zero-level
78) Old World should pursue a(n) ________ channel if it decides to greatly intensify its direct
marketing efforts.
A) intensive
B) one-level
C) zero-level
D) selective
79) The physical path a product follows on its way to customers is called a channel of
distribution.
80) Service providers do not need distribution channels because they market intangible goods.
81) Explain the primary concerns of managers when establishing distribution policies.
82) What is value density and what is its impact on an organization’s distribution policy?
83) How can a lack of market understanding, theft, and corruption affect distribution?
84) The value of a product relative to its weight and volume is called its ________.
A) face value
B) value investing
C) real value
D) value density
85) Which of the following is implied by a product with a low value density?
A) the distribution system is more localized
B) the product is more valuable
C) the cost of shipping the product is negligible
D) the product is processed in areas away from their original locations
86) Which of the following products has a low value-density ratio?
A) semiconductors
B) emerald
C) crude oil
D) premium perfumes
87) Which of the following is true of the value densities of products?
A) The cost of transporting goods with high value-density ratios is high relative to their value.
B) Products with high value-density ratios are integrated into the manufacturing process at points
close to their original locations.
C) Most commodities, including cement, iron ore, and crude oil, have high value-density ratios.
D) The lower a product’s value density, the more localized the distribution system.
88) A pricing policy in which one selling price is established for all international markets is
called ________.
A) dual pricing
B) value-based pricing
C) worldwide pricing
D) target pricing
89) A pricing policy in which a product has a different selling price in export markets than it has
in the home market is called ________.
A) dual pricing
B) cost-plus pricing
C) penetration pricing
D) premium pricing
90) When a product has a higher selling price in the target market than it does in the home
market or the country where production takes place, it is called ________.
A) price skimming
B) price escalation
C) price dispersion
D) price fixing
91) Which of the following refers to the price charged for products sold between a company’s
divisions or subsidiaries?
A) dual pricing
B) transfer price
C) price skimming
D) arm’s length price
92) The free-market price that unrelated parties charge one another for a specific product is
called a(n) ________.
A) worldwide price
B) transfer price
C) dual price
D) arm’s length price
93) Upper or lower limits placed on the prices of products sold within a country are known as
________.
A) price controls
B) transfer prices
C) price escalators
D) arm’s length prices
94) Which of the following occurs when the price of a good is lower in export markets than it is
in the domestic market?
A) skimming
B) dumping
C) transfer pricing
D) price escalation
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Copyright © 2019 Pearson Education, Inc.
Scenario: Old World Ltd.
Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution,
pricing, and promotion strategies. Being new to global business, the firm is seeking your help in
making its decisions.
95) If Old World adopts different selling prices in export markets than it has in the British
market, it would be following a ________ pricing strategy.
A) dual
B) transfer
C) target
D) worldwide
96) Ben knows that a pricing policy in which one selling price is established for all international
markets is called ________.
A) worldwide pricing
B) value-based pricing
C) dual pricing
D) arm’s length pricing
97) Because Scooters Inc. caters to a very narrow niche of wealthy individuals, the CEO is
interested in implementing a worldwide pricing scheme. Which of the following is most likely a
reason for the establishment of such a scheme?
A) Their production costs differ from market to market.
B) The currency values fluctuate fairly predictably.
C) Their distribution channels are lengthy in each market.
D) Their customers have similar levels of purchasing power.
98) Scooters Inc. has traditionally sold its products at one price in the domestic market and at
another price in export markets, which is called a(n) ________ pricing strategy.
A) target
B) value
C) dual
D) arm’s length
99) The more intermediaries there are in a distribution channel, the more costly the channel
becomes.
100) The lower a product’s value density, the more localized is the distribution system for that
product.
101) An arm’s length price is the price that is charged for products sold among a company’s
divisions or subsidiaries.
102) Antidumping tariffs punish producers in the offending nation by increasing the price of
their products to a fairer level.
103) Differentiate between worldwide and dual pricing. Which one of these is more difficult to
achieve and why?