Question 1

Which of the following is true of selective distribution?

Accepted Answer

A) It is commonly needed for convenience products and business supplies used by all offices. 
B) It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C) It is selling through only one intermediary in a particular geographic area. 
D) It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E) It is selling through only those intermediaries who will give the product special attention. 
A) It is commonly needed for convenience products and business supplies used by all offices. 
B) It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C) It is selling through only one intermediary in a particular geographic area. 
D) It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E) It is selling through only those intermediaries who will give the product special attention.

Question 2

Channel specialists use the regrouping activities of sorting and assorting to resolve discrepancies of

Accepted Answer

A) time. 
B) quantity. 
C) assortment. 
D) place. 
E) need. 
A) time. 
B) quantity. 
C) assortment. 
D) place. 
E) need.

Question 3

Which of the following best illustrates discrepancy of quantity?

Accepted Answer

A) Michelin makes tires,but most consumers also want a large selection of car-care services. 
B) Some stores sell large quantities of Michelin tires but only small quantities of tires made by other companies. 
C) There are over 310 million consumers in the United States,but only a small portion buy tires in any given year. 
D) Four firms make over 90 percent of all the tires sold in the United States. 
E) Michelin made millions of tires last year,but most customers bought only one set. 
A) Michelin makes tires,but most consumers also want a large selection of car-care services. 
B) Some stores sell large quantities of Michelin tires but only small quantities of tires made by other companies. 
C) There are over 310 million consumers in the United States,but only a small portion buy tires in any given year. 
D) Four firms make over 90 percent of all the tires sold in the United States. 
E) Michelin made millions of tires last year,but most customers bought only one set.

Question 4

"Sorting" means separating products into grades and qualities desired by different target markets.

Accepted Answer

A) True 
 B)False

Question 5

Intermediaries are needed most when the desired degree of market exposure is

Accepted Answer

A) selective. 
B) intensive. 
C) exclusive. 
D) administered. 
E) Intermediaries are needed equally for any degree of market exposure. 
A) selective. 
B) intensive. 
C) exclusive. 
D) administered. 
E) Intermediaries are needed equally for any degree of market exposure.

Question 6

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location,but the supermarket manager refuses to give that valuable real estate to this producer.This is an example of ________ channel conflict.

Accepted Answer

A) contractual 
B) vertical 
C) corporate 
D) horizontal 
E) administered 
A) contractual 
B) vertical 
C) corporate 
D) horizontal 
E) administered

Question 7

Exporters usually work with specialists who can handle international problems such as customs,taxes,exchange rates,and shipping.

Accepted Answer

A) True 
 B)False

Question 8

Use this information for questions that refer to the World Tennis Ball (WTB)Company case. World Tennis Ball Co.(WTB)makes tennis balls and sells them only in the United States.Raul Fernandez,the firm's marketing manager,is comparing his firm's distribution with two major competitors.
1)WTB sells its products through four regional distributors,who then sell to 22 sporting goods wholesalers.The wholesalers sell to a total of 7,000 retail outlets.From its website,WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls.WTB cooperates with members of its channel but maintains some control through its economic power and leadership.It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.
2)American Tennis Ball (ATB)is a competitor that sells through two distributors-each with half the country.The distributors then sell through six sporting goods wholesalers,and they,in turn,sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores).ATB and its channel make little effort to work together.However,because of a relatively low level of competition between the distributors,the wholesalers,or the retail stores,each member of the channel gives the product special attention.
3)National Tennis Ball (NTB)sells its products through only three tennis specialty wholesalers that sell only to tennis clubs.NTB actually owns the wholesale firms that handle its products.NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.
If American Tennis Ball adds more wholesalers and more retail outlets,it is likely to

Accepted Answer

A) create horizontal channel conflict. 
B) lead to vertical channel conflict. 
C) require that the largest wholesaler take over the channel captain role. 
D) increase trust and cooperation in the channel. 
E) prompt both vertical and horizontal channel conflict. 
A) create horizontal channel conflict. 
B) lead to vertical channel conflict. 
C) require that the largest wholesaler take over the channel captain role. 
D) increase trust and cooperation in the channel. 
E) prompt both vertical and horizontal channel conflict.

Question 9

Discrepancy of quantity means

Accepted Answer

A) there are more producers than consumers. 
B) there are more consumers than producers. 
C) the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users. 
D) consumers want more products than producers can make. 
E) the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users. 
A) there are more producers than consumers. 
B) there are more consumers than producers. 
C) the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users. 
D) consumers want more products than producers can make. 
E) the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.

Question 10

If a Universal computer monitor breaks while it is still under warranty,someone needs to get it to the repair center.In this case,Universal will need

Accepted Answer

A) reverse channels. 
B) multichannels. 
C) intensive distribution. 
D) exclusive distribution. 
E) selective distribution. 
A) reverse channels. 
B) multichannels. 
C) intensive distribution. 
D) exclusive distribution. 
E) selective distribution.

Question 11

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide.This is an example of ________ distribution.

Accepted Answer

A) administered 
B) intensive 
C) horizontal 
D) selective 
E) exclusive 
A) administered 
B) intensive 
C) horizontal 
D) selective 
E) exclusive

Question 12

Joint venturing gives a firm less control than if it owns a separate subsidiary.

Accepted Answer

A) True 
 B)False

Question 13

Vertical marketing systems are growing in the United States but declining in the rest of the world.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the most common system for distributing consumer products in the United States?

Accepted Answer

A) direct channel system 
B) vertical marketing system 
C) traditional channel system 
D) horizontal marketing system 
E) None of these answers is correct. 
A) direct channel system 
B) vertical marketing system 
C) traditional channel system 
D) horizontal marketing system 
E) None of these answers is correct.

Question 15

Oceanside Tools,Inc.of Newport,Rhode Island,has agreed to work with a Thai company to produce and sell chemicals in Thailand.The U.S.firm will provide technical and marketing know-how,while its Thai partner will provide knowledge of Thai markets and political connections.The partners will share the costs and profits 50/50.This type of international involvement is called

Accepted Answer

A) direct investment. 
B) management contracting. 
C) licensing. 
D) multinational marketing. 
E) joint venturing. 
A) direct investment. 
B) management contracting. 
C) licensing. 
D) multinational marketing. 
E) joint venturing.

Question 16

Selective distribution means selling through

Accepted Answer

A) retailers but not wholesalers. 
B) multichannel distribution. 
C) all responsible and suitable wholesalers. 
D) only those wholesalers and retailers who give the product special attention. 
E) only one wholesaler or retailer in each geographic area. 
A) retailers but not wholesalers. 
B) multichannel distribution. 
C) all responsible and suitable wholesalers. 
D) only those wholesalers and retailers who give the product special attention. 
E) only one wholesaler or retailer in each geographic area.

Question 17

Which of the following statements about Place is FALSE?

Accepted Answer

A) Place variations are required when target markets have different needs. 
B) Product classes suggest Place objectives. 
C) Place decisions have relatively little impact on competition in a product-market. 
D) Place decisions have longer-run implications than Price decisions. 
E) Place decisions must take into consideration when customers want products. 
A) Place variations are required when target markets have different needs. 
B) Product classes suggest Place objectives. 
C) Place decisions have relatively little impact on competition in a product-market. 
D) Place decisions have longer-run implications than Price decisions. 
E) Place decisions must take into consideration when customers want products.

Question 18

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer.This would be an example of

Accepted Answer

A) bulk-breaking. 
B) sorting. 
C) accumulating. 
D) assorting. 
E) discrepancy of quantity. 
A) bulk-breaking. 
B) sorting. 
C) accumulating. 
D) assorting. 
E) discrepancy of quantity.

Question 19

A firm that has a lot of management know-how but expects production problems in a foreign market might be wise to use management contracting.

Accepted Answer

A) True 
 B)False

Question 20

A firm would prefer an administered channel system to a corporate channel system for all the following reasons EXCEPT that

Accepted Answer

A) managing all manufacturing,wholesaling,and retailing functions in a channel is too challenging. 
B) administered channel systems are more costly to operate than corporate systems. 
C) corporate channel systems offer more control over marketing activities than administered systems. 
D) administered channel systems offer good enough channel cooperation for the firms' distribution needs. 
E) administered channel systems have some of the same benefits of corporate channel systems but without the expense. 
A) managing all manufacturing,wholesaling,and retailing functions in a channel is too challenging. 
B) administered channel systems are more costly to operate than corporate systems. 
C) corporate channel systems offer more control over marketing activities than administered systems. 
D) administered channel systems offer good enough channel cooperation for the firms' distribution needs. 
E) administered channel systems have some of the same benefits of corporate channel systems but without the expense.

Which of the following is true of selective distribution?

Channel specialists use the regrouping activities of sorting and assorting to resolve discrepancies of

Which of the following best illustrates discrepancy of quantity?

"Sorting" means separating products into grades and qualities desired by different target markets.

Intermediaries are needed most when the desired degree of market exposure is

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location,but the supermarket manager refuses to give that valuable real estate to this producer.This is an example of ________ channel conflict.

Exporters usually work with specialists who can handle international problems such as customs,taxes,exchange rates,and shipping.

Discrepancy of quantity means

If a Universal computer monitor breaks while it is still under warranty,someone needs to get it to the repair center.In this case,Universal will need

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide.This is an example of ________ distribution.

Joint venturing gives a firm less control than if it owns a separate subsidiary.

Vertical marketing systems are growing in the United States but declining in the rest of the world.

Which of the following is the most common system for distributing consumer products in the United States?

Selective distribution means selling through

Which of the following statements about Place is FALSE?

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer.This would be an example of

A firm that has a lot of management know-how but expects production problems in a foreign market might be wise to use management contracting.

A firm would prefer an administered channel system to a corporate channel system for all the following reasons EXCEPT that

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotionintroduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters

Exam 10: Place and Development of Channel Systems

Which of the following is true of selective distribution?

Channel specialists use the regrouping activities of sorting and assorting to resolve discrepancies of

Which of the following best illustrates discrepancy of quantity?

"Sorting" means separating products into grades and qualities desired by different target markets.

Intermediaries are needed most when the desired degree of market exposure is

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location,but the supermarket manager refuses to give that valuable real estate to this producer.This is an example of ________ channel conflict.

Exporters usually work with specialists who can handle international problems such as customs,taxes,exchange rates,and shipping.

Discrepancy of quantity means

If a Universal computer monitor breaks while it is still under warranty,someone needs to get it to the repair center.In this case,Universal will need

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide.This is an example of ________ distribution.

Joint venturing gives a firm less control than if it owns a separate subsidiary.

Vertical marketing systems are growing in the United States but declining in the rest of the world.

Which of the following is the most common system for distributing consumer products in the United States?

Selective distribution means selling through

Which of the following statements about Place is FALSE?

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer.This would be an example of

A firm that has a lot of management know-how but expects production problems in a foreign market might be wise to use management contracting.

A firm would prefer an administered channel system to a corporate channel system for all the following reasons EXCEPT that

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotionintroduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters