SOLVED

31) Company X plans to enter a foreign market by purchasing land and building a new facility. What should Company X most likely do to improve its chances of success? A) develop a knowledgeable local network of business associates B) send home-country representatives to manage construction C) acquire a small, local firm in the logistics industry D) engage in e-commerce to identify local demands E) leverage economies of scale in the local market 32) Sadie’s Shoes sells fashionable, affordable shoes directly to customers through the company Web site. The firm does not have any brick-and-mortar stores. Sadie’s Shoes is most likely engaged in ________. A) niche marketing B) globalization C) networking D) e-commerce E) blogging 33) Which of the following is LEAST likely a benefit of e-commerce? A) eliminating costly channel layers B) reducing high labor and inventory costs C) enabling customers to shop when convenient D) reducing geographic barriers and constraints E) building ties with more channel intermediaries 34) What is the world’s largest market for e-commerce sales? A) Japan B) China C) Germany D) United States E) United Kingdom 35) Which of the following is most likely a true statement about Zappos? A) Zappos reduces shoppers’ risks by offering free shipping and returns. B) Zappos gained immediate success when it came under the Amazon umbrella. C) Zappos shifted from traditional brick-and-mortar stores to online-only retailing. D) Zappos’ e-commerce strategy reduces the firm’s need for customer service employees. E) Zappos’ gross sales for clothing have now surpassed the firm’s gross sales for footwear. 36) A firm that uses e-commerce channels to enter new markets most likely wants to do all of the following EXCEPT________. A) increase sales growth B) minimize expansion risks C) gain proximity to local suppliers D) identify local customer priorities E) limit staff and infrastructure expenditures 37) What is the primary drawback of online shopping for most customers? A) restricted reach B) lack of immediacy C) limited assortment D) complex infrastructures E) minimal customer support 38) AVW Enterprises, a supplier in the B2B sector, recently introduced an e-commerce site to improve its supply chain management. What should AVW most likely do to minimize conflicts with its downstream channel members? A) offer mature and declining products on the website B) avoid diverting website orders to channel partners C) take online orders for products and services D) offer lower prices than channel partners E) promote channel partners on the website 39) Which term refers to vertical channel partners using multiple routes to reach horizontal end-users? A) hierarchical multichannel relationship B) integrated channel strategy C) channel free-riding D) vertical integration E) disintermediation 40) What channel system inequity is increasing significantly with the growth of e-commerce? A) bundling B) free-riding C) hybrid retailing D) reverse auctions E) creative pricing 41) Approximately 50% of the U.S. gross domestic product comes from the service sector and the other half from the manufacturing sector. 42) The disintermediation process occurs when manufacturers exclude their channel partners so that they can sell directly to end consumers. 43) Coproduction between the provider and end-user and inventory perishability are both higher for products than for services. 44) Geographic convenience becomes more important as coproduction between the provider and end-user increases. 45) Although the Chilean market is highly attractive for retailers, it has a very high degree of co