Test 2 Chapter 12

Question 1

door-to-door selling

Answer 1

Mature form in the U.S.
Growing popularity in China—AIG insurance, Mary Kay, Tupperware, Avon, Amway
Amway sales tripled in China, 1998-2004 to $2 billion, Co.’s biggest market
cars in Japan with 100,000 salespeople

Question 2

retailing in developing countries

Answer 2

Consumers purchase food, soft drinks and other items at “Mom & Pop” stores, kiosks, and market stalls in single use packages
70% of Mexicans shop at these stores

Question 3

global retailing strategies- organic

Answer 3

Organic growth

Company uses its own resources to open a store on a greenfield site or acquire one or more existing retail facilities

Question 4

Franchise

Answer 4

Appropriate strategy when barriers to entry are low yet the market is __________in terms of consumer behavior or retailing structures

Question 5

Chain Acquisition

Answer 5

A market entry strategy that entails purchasing a company with multiple existing outlets in a foreign country

Question 6

Joint Venture

Answer 6

This strategy is advisable when culturally _______________

__________ markets are targeted

Question 7

Inventory management

Answer 7

Ensures that a company neither runs out of manufacturing components or finished goods nor incurs the expense and risk of carrying excessive stock of these items