50) A ________ retail system is one in which there are many retailers, none of which has a major
share of the market.
A) concentrated
B) consolidated
C) focused
D) fragmented
51) Which of the following countries has a concentrated retail system?
A) China
B) the United States
C) Japan
D) India
52) ________ refers to the number of intermediaries between the producer (or manufacturer) and
the consumer.
A) Channel length
B) Channel exclusivity
C) Channel quality
D) Channel speed
53) The Duchess and the Duke sells through an import agent, a wholesaler, and a retailer. In this
case,
A) a long channel exists.
B) the retail system must be concentrated.
C) a short channel exists.
D) there is no channel.
54) The most important determinant of channel length is the degree to which a retail system is
A) concentrated.
B) fragmented.
C) decentralized.
D) globalized.
55) Which of the following statements about fragmented retail systems is true?
A) Countries with fragmented retail systems tend to have short channels of distribution.
B) The more fragmented the retail system, the less expensive it is for a firm to make contact with
each individual retailer.
C) Fragmented retail systems tend to promote the growth of wholesalers to serve retailers.
D) When the retail sector is very fragmented, it makes sense for the firm to deal directly with
retailers.
56) What kind of retail system does Japan have?
A) fragmented
B) direct
C) indirect
D) concentrated
57) With a concentrated retail sector
A) a relatively large sales force is required.
B) the orders generated from each sales call can be large.
C) there are long channels of distribution.
D) it is expensive for the firm to make contact with each individual retailer.
58) ________ distribution channel is one that is difficult for outsiders to access.
A) A selective
B) An intensive
C) A exclusive
D) A multichannel
59) When a channel is exclusive
A) the firm sells and distributes only high-end products.
B) it is controlled by market leaders or by firms who have a niche market.
C) the firm’s products are focused only on elite, upper class customers.
D) it is often difficult for a new firm to get access to shelf space in supermarkets.
60) Channel ________ refers to the expertise, competencies, and skills of established retailers in a
nation, and their ability to sell and support the products of international businesses.
A) exclusivity
B) knowledge
C) quality
D) skill
61) Which of the following statements about the choice of distribution strategy is true?
A) The longer a channel, the greater the aggregate markup, and the higher the price that consumers
are charged for the final product.
B) If price is an important competitive weapon and if the firm does not want to see its profit
margins squeezed, other things being equal, the firm would prefer to use a longer channel.
C) The shorter a channel, the greater the aggregate markup, and the higher the price that consumers
are charged for the final product.
D) An international business must use shorter channels in countries where the retail sector is
fragmented and longer channels in countries where the retail sector is concentrated.
62) In the 1960s, the Swedish vacuum manufacturer Electrolux successfully marketed vacuums in
the United Kingdom with the slogan “Nothing sucks like an Electrolux.”
The informal United States meaning of the word sucks was well known in the United Kingdom at
the time, and the company hoped the slogan, with its possible double entendre, would gain
attention. When this slogan was used in the American market, it was a catastrophe. This is an
example of
A) cultural differences.
B) religious differences.
C) source effects.
D) noise levels.
63) To overcome cultural barriers, companies should
A) develop products specifically for each market.
B) focus on universal needs.
C) focus only on international market segments.
D) develop cross-cultural literacy.
64) When the receiver of a message evaluates a message based on the status or image of the sender,
________ are said to have occurred.
A) sender effects
B) noise effects
C) source effects
D) communication effects
65) The extent to which the place of manufacturing influences product evaluations is known as
A) source effects.
B) country of origin effects.
C) noise effects.
D) location effects.
66) The “Swiss Made” label has leveraged several watchmakers (for example, TAG Heuer) for
decades now. This is an example of a ____ effect.
A) linguistic
B) country of origin
C) noise
D) cultural
67) The probability of effective communications is reduced by
A) noise.
B) location effects.
C) country of origin effects.
D) source effects.
68) Which of the following statements about barriers to international communication is true?
A) Source effects occur when the receiver of the message evaluates the message on the basis of the
location of the sender.
B) The best way for a firm to overcome cultural barriers is to use local input.
C) Source effects and country of origin effects are always negative.
D) Noise is extremely high in highly developed countries such as the United States.
69) When a firm emphasizes personal selling rather than mass media advertising in the
promotional mix, the firm is using a ________ strategy.
A) standardized
B) pull
C) push
D) localized