Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
41. If two retailers that carry the same product have a conflict, it is which of the following?
a. vertical channel conflict
b. forward integration conflict
c. horizontal channel conflict
d. backward channel conflict
e. intermediary conflict
42. Which occurs when there are disputes between channel members at different levels?
a. vertical channel conflict
b. forward integration conflict
c. horizontal channel conflict
d. backward channel conflict
e. intermediary conflict
43. Which of the following is NOT a source of channel member power?
a. legitimate
b. coercive
c. referent
d. captain
e. expert
44. As discussed in the text, M4 Science Corporation recently signed an international distribution
agreement with Fukuda Corporation of Japan. The power that M4 has in this agreement is
referred to as which of the following?
a. legitimate
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. coercive
c. referent
d. captain
e. expert
45. The knowledge that Al Tayer Group has about the industry represents a form of which kind
of channel power?
a. legitimate
b. coercive
c. referent
d. captain
e. expert
46. Which of the following reflects a desire of channel members to continue channel
relationships?
a. marketing channel trust
b. marketing channel commitment
c. marketing channel agreement
d. marketing channel coercion
e. marketing channel reliance
47. Which of the following is NOT a stage in the international negotiation process?
a. preparation
b. relationship building
c. information gathering
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
d. qualifying
e. closing the deal
48. An important part of closing a negotiated deal includes which of the following?
a. BATNA
b. BATNI
c. BOTNI
d. BOTNA
e. BATNO
49. Which of the following is NOT a feature of a relationship-oriented culture as it pertains to
international negotiations?
a. focus on increasing trust
b. focus on competition
c. high context
d. authority and position play key roles
e. collectivism
50. The functions of international marketing channel members include all of the following
EXCEPT ______.
a. researching market needs
b. promoting products
c. fulfilling order-taking duties
d. communicating with other channel members
e. monitor IMC initiatives
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
51. An international marketing channel consists of the marketing system that promotes the
physical flow and ownership of products and services from producer to consumer.
a. True
b. False
52. International distribution is the process by which products and services flow between
producers, companies that act as intermediaries, and consumers, and that includes the transfer of
ownership.
a. True
b. False
53. Downstream activities focus on bringing a product or supplies into a company.
a. True
b. False
54. Upstream activities concentrate on sending a product or supplies to another channel member,
usually for resale.
a. True
b. False
55. Distribution intensity refers to the number of intermediaries that carry a product in a market.
a. True
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. False
56. Distribution intensity refers to the total number of products that a producer sends through a
marketing channel.
a. True
b. False
57. Intensive distribution is an international marketing strategy in which products are distributed
through as many wholesalers and retailers as possible.
a. True
b. False
58. When a company uses on a single channel member for distributing its product, it is using
selective distribution.
a. True
b. False
59. Exclusive distribution is an international marketing strategy that focuses on offering products
through only one wholesaler or retailer in a particular market area.
a. True
b. False
60. Prestigious products are often distributed with intensive distribution strategies.
Instructor Resource
Baack et al., International Marketing, 2e
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a. True
b. False
61. International marketers consider business precedent, local conditions, the availability of
intermediaries, and managerial preference when selecting distribution strategies.
a. True
b. False
62. International marketers use direct strategies when they sell a product directly to their
customers without the use of intermediaries.
a. True
b. False
63. International marketers use indirect strategies when they sell a product directly to their
customers without the use of intermediaries.
a. True
b. False
64. In an international context, agent middlemen take title or ownership of products.
a. True
b. False
65. In an international context, merchant middlemen take title and ownership of products.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
a. True
b. False
66. Trading companies are rare in the Pacific Rim.
a. True
b. False
67. The chaebols of South Korea are similar in many ways to the Japanese keiretsus.
a. True
b. False
68. A freight forwarder provides shipping, documentation, customs clearance and brokerage,
consolidation, storage, and insurance for international marketers.
a. True
b. False
69. International marketing channels differ significantly in both length and complexity.
a. True
b. False
70. Japanese consumers make few trips to retailers which mean numerous large retail stores exist
in the country.
a. True
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Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. False
71. International distribution system selection factors include type of product, price, competition,
brand image, and target market considerations.
a. True
b. False
72. Political, geographical, economic, and cultural differences influence international distribution
decisions.
a. True
b. False
73. International distribution decisions are largely impacted by country infrastructure
development.
a. True
b. False
74. A pull strategy focuses on providing intermediaries with incentives that will lead them to
cooperate in marketing an international product.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
75. A push strategy means that a producer concentrates on stimulating consumer demand through
extensive advertising and consumer promotions.
a. True
b. False
76. International marketers usually select push or pull strategies, but they rarely use both.
a. True
b. False
77. Vertical integration means that one member of a market channel merges with or acquires
another intermediary.
a. True
b. False
78. The Spanish clothing retail chain Zara uses a backward integration strategy as it produces
many of its products in-house by producing its own products.
a. True
b. False
79. Horizontal integration exists when a company acquires or merges with another company at
the same level of the distribution channel.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
80. Parallel importing is a gray market process in international marketing.
a. True
b. False
81. Channel captains coordinate the marketing tasks provided by channel members.
a. True
b. False
82. Two major types of channel conflict are horizontal and vertical conflict.
a. True
b. False
83. Power bases in international marketing channels include legitimate, referent, expert, reward,
and cooperative.
a. True
b. False
84. The negotiation process as it applies to international marketing begins with preparation for
negotiations and ends with closing a deal.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
85. Negotiators often plan for what is known as “BATNA,” or the best alternative to a negotiated
agreement.
a. True
b. False
86. Hofstede’s cultural dimensions play an important role in international negotiations.
a. True
b. False
87. Performing market research duties is not a typical function provided by international
marketing channel members.
a. True
b. False
88. Discrepancies of assortment include sorting out, accumulating, allocating, and assorting.
a. True
b. False
89. A letter of credit is issued by a producer to a customer to indicate how much credit is
available on a particular account.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
90. International marketing channel structure is impacted by cost, coordination, coverage,
cooperation, and control issues.
a. True
b. False
91. List and describe the various marketing channel decisions that are discussed in the text. Use
an example of an international marketing channel of your choice to discuss your responses.
92. Describe what is meant by intensive distribution, selective distribution, and exclusive
distribution. Use examples of products that are marketed internationally to illustrate each of these
concepts.
93. List and describe the key elements of managing international distribution channels as
discussed in the text. Illustrate how each of these elements affects international distribution
decisions.
94. Discuss what is meant by a gray market. How do gray markets affect international marketing
practices?
95. Discuss the various forms of channel member power as described in the text. Provide an
example of each form and how it relates to international marketing channel management.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019