GMS 522 CHAPTER #10 EXAM
QUESTIONS AND ANSWERS
Intermediary selection - Product experience - Answer-market/technical knowledge,
past/current clients, geo cover
Intermediary selection - Financial & physical resources - Answer-$health, facility quality,
IT/special capabilities
Intermediary selection - Human resources - Answer-# sales people, quality of
management
Intermediary selection - Networks & contacts - Answer-govt/retailers/ relationships,
reputation, industry contacts
Distributor contracts - Answer-short term <2y, termination clause, how paid - currency /
commission, products covered, distributor responsibilities, territory assigned
Channel management - Answer-Leadership/power/motivate, monitor/control, conflict,
terminate
International logistics management - Answer-materials management & physical
distribution
Distribution activities - Answer-transportation, selection criteria, alternative modes,
documents, facilitation, package, inventory management, warehouse, parallel
distribution, conditions)
The Gray Trade - Answer-parallel distribution - authentic/legitimate unauthorized sales -
Inexpensive items (watches), expensive capital investment (Kubota tractors)
Gray Trade - Conditions - Answer-price discrepancy, limited availability, inexpensive
logistics
Gray Trade - Effects - Answer-erosion of brand equity, legal, complicated global
marketing strategies, strained relationships with authorized channel members
Gray Trade - Proponents - Answer-lower prices/no customer service, segments market,
employment
Gray Trade - Price differences - Answer-inexpensive logistics & limited availability,
different set prices
QUESTIONS AND ANSWERS
Intermediary selection - Product experience - Answer-market/technical knowledge,
past/current clients, geo cover
Intermediary selection - Financial & physical resources - Answer-$health, facility quality,
IT/special capabilities
Intermediary selection - Human resources - Answer-# sales people, quality of
management
Intermediary selection - Networks & contacts - Answer-govt/retailers/ relationships,
reputation, industry contacts
Distributor contracts - Answer-short term <2y, termination clause, how paid - currency /
commission, products covered, distributor responsibilities, territory assigned
Channel management - Answer-Leadership/power/motivate, monitor/control, conflict,
terminate
International logistics management - Answer-materials management & physical
distribution
Distribution activities - Answer-transportation, selection criteria, alternative modes,
documents, facilitation, package, inventory management, warehouse, parallel
distribution, conditions)
The Gray Trade - Answer-parallel distribution - authentic/legitimate unauthorized sales -
Inexpensive items (watches), expensive capital investment (Kubota tractors)
Gray Trade - Conditions - Answer-price discrepancy, limited availability, inexpensive
logistics
Gray Trade - Effects - Answer-erosion of brand equity, legal, complicated global
marketing strategies, strained relationships with authorized channel members
Gray Trade - Proponents - Answer-lower prices/no customer service, segments market,
employment
Gray Trade - Price differences - Answer-inexpensive logistics & limited availability,
different set prices
