Chapter 12
a
63) Saks Fifth Avenue has ________ stores in the Middle East. A) licensed B) organic C) franchise D) joint venture E) own-label focus
b
86) Order processing, warehousing, and inventory management are all functions pertaining to: A) a polycentric orientation. B) physical distribution and logistics. C) sales promotion. D) personal selling. E) chain acquisition.
d
87) A commodity raw material that comes from Africa, is refined in Asia, is shipped to South America for finishing, and finally is transported to the Middle East and then sold around the world mimics products marketed by: A) Exxon. B) McDonald's. C) Caterpillar. D) IKEA. E) Sears.
e
88) Inventory management is: A) determining what type of warehouse to manage. B) establishing an inventory channel. C) managing physical distribution of products. D) purchasing products. E) ensuring cost control.
b
89) An important new tool for inventory management is: A) ODW. B) RFID. C) LEGO. D) VUCA. E) EPOS.
b
9) Which country has the biggest market for Tupperware? A) Romania B) Indonesia C) China D) Russia E) India
d
90) Which of the following transportation modes ranks lowest in capability? A) truck B) railroad C) Internet D) air E) water
a
91) "Containerization" refers to a company's: A) designing attractive product packaging that will help a product "sell itself." B) use of computer technology to keep a lid on ("contain") distribution costs. C) use of refrigerated warehouses for perishable products. D) use of standard-sized shipping boxes that can be transported in various ways. E) method of shipment by using oval size steel containers to fit different commodities.
e
1) In spite of Walmart's potential to transform India's retail sector for the better, Indian activists and policy makers are worried because: A) Western-style, big-box retailing is anathema. B) millions of shopkeepers will be out of business. C) policy makers are suspicious of the company's motives. D) attitude that can be traced back to the British East India company of the colonial era. E) all of the above
b
10) Tupperware is considered as an aspirational brand that represents "moving up" in life in: A) Romania. B) Indonesia. C) China. D) Russia. E) India.
c
11) Sales representatives in which Japanese industry cultivate close, long-term relations with customers by selling door-to-door? A) consumer electronics B) pharmaceuticals C) automobiles D) soft drinks E) groceries
b
12) In less-developed countries the most important channel of distribution is: A) door to door. B) public marketplaces. C) wholesale marketplaces. D) pyramid schemes. E) retail stores.
b
13) What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread? A) Deliver the bread frozen. B) Package the bread in plastic bags. C) Convert to a paperless office to cut red tape. D) Deliver the bread sliced rather than in whole loaf form. E) Use paper packaging for bread.
a
4) Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create: A) place utility. B) time utility. C) form utility. D) information utility. E) all of the above
b
43) By definition, ________ feature a narrow but deep merchandise mix and high levels of service. A) department stores B) specialty retailers C) supermarkets D) convenience stores E) discount stores
a
44) "Organized retail" is a term used to describe: A) modern chain stores. B) grocery stores. C) local retail chains. D) supermarkets. E) hypermarkets.
a
45) "Nakumatt" is a supermarket chain in: A) Kenya. B) India. C) Japan. D) Korea. E) Indonesia.
c
46) Channel decisions are important because: A) commitments are flexible. B) relationships change with time. C) it is expensive to terminate. D) issues can be solved by arbitration. E) local laws do not protect agreements.
a
47) Which of the following does not qualify as a "category killer?" A) Victoria's Secret B) IKEA C) Home Depot D) Circuit City E) Toys "R" Us
e
48) Which of the following is the largest retailer in the world in terms of annual sales according to the top five global retailers, 2012? A) Sears B) Metro C) Kmart D) Carrefour E) Walmart
b
49) Departmentalized, single-story retail establishments that offer food and nonfood items, mostly on a self-service basis are called: A) Specialty retailers. B) Supermarkets. C) Convenience stores. D) Discount retailers. E) Hyper markets.
c
5) Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility? A) place utility B) time utility C) form utility D) information utility E) worker utility
c
50) When Walmart entered the German market, ________ were already entrenched. A) Specialty retailers B) Discount retailers C) Hard discounters D) Hypermarkets E) Supermarkets
c
51) All of the following stores are categorized as "superstores" except: A) Toys "R" Us. B) Home Depot. C) IKEA. D) Babies "R" Us. E) The Body Shop.
c
52) Which of the following statements is not correct? A) Walmart pulled out of Germany and South Korea. B) Best Buy closed several stores in China. C) Home Depot pulled out of China. D) Mattel closed its flagship Barbie store in Shanghai. E) Tesco shut down Fresh & Easy stores in the United States.
b
53) Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
c
62) The entry global retailing market expansion strategies include all of the following except: A) franchise. B) chain acquisition. C) departmental stores. D) joint ventures. E) organic.
a
64) A variety of environmental factors have combined to push retailers out of their home markets in search of opportunities around the globe. All of the following reasons are responsible for such a move except: A) saturation of the home-country market. B) a recession in the home-country. C) strict regulation on store development. D) high operating costs. E) high population growth.
b
7) Peer-to-peer (p-to-p) marketing uses distribution channels through: A) business-to-consumers. B) electronic commerce. C) business-to-business. D) door-to-door. E) manufacturer-to-wholesalers.
c
8) eBay was a pioneer in a form of online marketing known as: A) b-to-c. B) b-to-b. C) p-to-p. D) d-to-d. E) c-to-b.
e
85) Physical distribution and logistics are concerned with all but one of the following: A) order processing. B) warehousing. C) inventory management. D) transportation. E) designing in-store displays.
b
92) When a company uses intermodal or multimodal transportation, it is: A) using multiple channels. B) using land and water shipping. C) shipping via more than one railroad line. D) using the services of both UPS and FedEx. E) using different size containers for shipment.
a
93) A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel. This is an example of: A) intermodal transportation. B) inventory control. C) hypermarketing. D) "cherry picking" a product. E) containerization.
b
96) The scandal about finding horse DNA in frozen beef burgers sold in supermarkets in Ireland became a big issue. However, the fact remains that 60,000 tons of horse meat were sold in Europe in 2012. Other facts about horse meat include all of the following except: A) in Europe, horse meat is available from a variety of suppliers. B) it is legal to produce horse meat in the United States. C) horses are shipped from the United States to Mexico and Canada for slaughter. D) Italy imports 50 million pounds of horse meat annually from Ireland. E) horse meat is lean and high in iron and other nutrients.
e
14) In exchange for a pledge to carry at least 40 different Procter & Gamble products, participating stores receive regular visits from P & G representatives who tidy and arrange display areas. This motivational program is referred to as: A) "buy-in-bulk" store program. B) "high-frequency" store program. C) "mom-and-pop" store program. D) "shop operators" program. E) "golden store" program.
c
15) The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products. A) door-to-door selling B) buy-in-bulk selling C) mom-and-pop stores D) franchised stores E) manufacturer-owned stores
c
16) Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market? A) Hewlett-Packard B) Compaq C) Dell D) Acer E) Sony
c
17) To motivate shopkeepers to stock more of P&G's products, the company launched a: A) door-to-door program. B) retail store program. C) golden store program. D) hypermarket program. E) sole distributor program.
b
2) Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except: A) place utility. B) price utility. C) information utility. D) form utility. E) time utility.
d
3) The availability of the product processed, prepared, in proper condition, and/or ready to use is referred to as: A) place utility. B) price utility. C) information utility. D) form utility. E) product utility.
e
31) Which of the following is an appropriate guideline for companies selecting independent distributors in international markets? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Treat local distributors as long-term partners. D) Maintain control over marketing strategy from day one. E) All of the above are appropriate guidelines.
c
32) Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Give local distributors control over marketing strategy. D) Treat local distributors as long-term partners. E) All of the above are appropriate guidelines.
b
33) A distributor with good contacts may appear to be the obvious choice in terms of generating quick sales and revenues but may not be the best one. Which of the guidelines for companies selecting independent distributors is this statement referring to? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Give local distributors control over marketing strategy. D) Treat local distributors as long-term partners. E) From the start maintain control.
c
54) Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
c
55) Dollar stores are classified under: A) Convenience stores. B) Specialty retailers. C) Discount retailers. D) Hard discounters. E) Category killers.
a
56) Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
a
57) Where in the axis that differentiates between retailers does IKEA fall? A) quadrant A B) quadrant B C) quadrant C D) quadrant D E) quadrant E
d
58) When Walmart stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Walmart used, management must have viewed Mexico as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
c
59) Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter? A) organic growth B) chain acquisition C) franchise D) joint venture E) own-label focus
a
6) Which of the following most accurately describes the relative length of consumer and industrial distribution channels? A) Consumer channels tend to be longer (consist of more intermediaries) than industrial channels. B) Industrial channels tend to be longer (consist of more intermediaries) than consumer channels. C) Both consumer and industrial channels tend to be long (consist of several intermediaries). D) Both consumer and industrial channels tend to be short (consist of few intermediaries). E) Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels.
a
60) When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
d
61) When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
a
94) A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the west coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is: A) intermodal transportation. B) inventory management. C) greenfield investment. D) hypermarketing. E) containerization.
c
95) Breaking all the conventional norms, Selfridge opened his department store just off Oxford Street. The changes incorporated include all of the following except: A) perfume and fragrance were moved to the front in order to avoid any horse dung odors. B) goods were put within reach of the customers. C) goods were kept behind counters and were available by asking store clerks. D) customers always came first. E) early bird specials were offered.
