QUESTION Consumers in the most developed countries are often willing to sacrifice their preferred product attributes for lower priced products. Indicate whether the statement is true or false. ANSWER FALSE For most consumer durables, product reliability may be a more important attribute in less developed nations, where such a purchase may account for a […]
QUESTION Firms based in less developed nations tend to build a lot of extra performance attributes into their products. Indicate whether the statement is true or false. ANSWER FALSE Firms based in highly developed countries such as the United States tend to build a lot of extra performance attributes into their products. These extra […]
QUESTION Differences in government-mandated product standards can rule out mass production and marketing of a standardized product. Indicate whether the statement is true or false. ANSWER TRUE Differing government-mandated product standards can rule out mass production and marketing of a standardized product. Differences in technical standards also constrain the globalization of markets. Some of […]
QUESTION A concentrated retail system is one in which there are many retailers, none of which has a major share of the market. Indicate whether the statement is true or false. ANSWER FALSE In a concentrated retail system, a few retailers supply most of the market. Many of the differences in concentration are rooted […]
QUESTION One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of the retail sector is less. Indicate whether the statement is true or false. ANSWER FALSE One benefit of a longer distribution channel is that it cuts selling costs when the retail sector is very […]
QUESTION There is generally a critical link among channel length, the final selling price, and the firm’s profit margin because each intermediary in a channel adds its own markup to the products. Indicate whether the statement is true or false. ANSWER TRUE Because each intermediary in a channel adds its own markup to the […]
QUESTION The expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international business are referred to as channel exclusivity. Indicate whether the statement is true or false. ANSWER FALSE Channel quality refers to the expertise, competencies, and skills of established retailers in a […]
QUESTION In terms of the differences between countries with respect to distribution systems, there is a tendency for lesser retail concentration in developed countries. Indicate whether the statement is true or false. ANSWER FALSE There is a tendency for greater retail concentration in developed countries. Three factors that contribute to this are the increases […]
QUESTION In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer. Indicate whether the statement is true or false. ANSWER FALSE The more fragmented the retail system, the more expensive it is for a firm to make contact […]
QUESTION The shorter the distribution channel, the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer. Indicate whether the statement is true or false. ANSWER FALSE The longer the distribution channel, the more intermediaries there are that must be persuaded to carry the product for […]
