Chapter 12
Global Placement and Distribution Channels
Multiple Choice Questions
1. Lorenzo is assessing the internal factors that impact his channel development in
the Middle East. Among other issues, he is considering _________________________________________.
A. market penetration objectives and the financial strength of his firm
B. local regulations
C. consumer shopping habits and market size
D. the stage of the product’s life cycle
2. Adeena is finalizing her distribution strategy in Indonesia, and is developing
statistics regarding local regulations, the competitive climate, and consumer shopping habits there. Adeena is assessing ________________________.
A. both internal and external factors
B. the stage of the product life cycle
C. external factors
D. internal factors
True / False Questions
3. Choosing indirect export as an international market entry mode will provide
complete control of the foreign marketing strategy.
True False
4. Strategic alliances and franchising agreements allow constant monitoring of sales
activities abroad.
True False
Multiple Choice Questions
5. In Europe, products such as milk, snack foods, and cigarettes are purchased with
high frequency, and found in almost every possible outlet. The distribution strategy used for these types of items would be ____________________.
A. specialty
B. exclusive
C. selective
D. intensive
6. High end kitchen cookware manufacturer LeCreuset’s products are widely
available through specialized retailers such as Bed, Bath and Beyond, and can also be found at department store chains such as Macys. However, the product is not heavily distributed through other types of retailers such as discount stores. LeCreuset’s distribution strategy would be considered ________________.
A. intensive
B. selective
C. exclusive
D. dual
7. In an exclusive distribution strategy, ___________________________________.
A. only a limited number of retailers have the right to sell products in their specific territories
B. product is made available exclusively through online sales
C. competitive products are not allowed to be sold in the same store
D. products are sold in every available distribution outlet
8. Rolex watches employs a(n) _______________________ distribution strategy.
A. limited
B. selective
C. intensive
D. exclusive
9. Beechwood Gums has identified a high market penetration as one of its key
objectives in pursuing the market in Russia. Accordingly, it will require a(n) _______________ distribution strategy, and a _____________ financial investment.
A. selective, moderate
B. exclusive, minimal
C. intensive, large
D. intensive, minimal
