Question 1

Why would a producer prefer direct distribution?

Accepted Answer

A) because it has more business transactions 
B) because they can handle orders that are smaller in size 
C) because they want to maintain control of the marketing mix 
D) because customers are usually widely dispersed across geographic areas 
E) because business products always use direct distribution 
A) because it has more business transactions 
B) because they can handle orders that are smaller in size 
C) because they want to maintain control of the marketing mix 
D) because customers are usually widely dispersed across geographic areas 
E) because business products always use direct distribution

Question 2

Vertical marketing systems account for a majority of U.S.retail sales.

Accepted Answer

A) True 
 B)False

Question 3

Any contractual channel system,by definition,is also an administered channel system.

Accepted Answer

A) True 
 B)False

Question 4

General Motors (GM),a U.S.automotive manufacturer,has an arrangement with Isuzu Motors of Japan in which the Isuzu Ascender is produced at the same GM manufacturing plant as the Chevrolet TrailBlazer and GMC Envoy.All three vehicles use the same basic platform and engine.This is an example of licensing.

Accepted Answer

A) True 
 B)False

Question 5

Marketers need to foster cooperation with various members of a channel system to prevent

Accepted Answer

A) channel competition. 
B) channel confusion. 
C) channel conflict. 
D) channel changing. 
E) channel surfing. 
A) channel competition. 
B) channel confusion. 
C) channel conflict. 
D) channel changing. 
E) channel surfing.

Question 6

The 80/20 rule is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Accepted Answer

A) True 
 B)False

Question 7

Producers often use multichannel distribution because

Accepted Answer

A) they want to sell both directly with a website and indirectly through intermediaries. 
B) big retail chains want to deal directly with producers. 
C) competitors use a variety of channels. 
D) present channel members are doing a poor job. 
E) All these answers are correct. 
A) they want to sell both directly with a website and indirectly through intermediaries. 
B) big retail chains want to deal directly with producers. 
C) competitors use a variety of channels. 
D) present channel members are doing a poor job. 
E) All these answers are correct.

Question 8

Exporting has an advantage,compared to other types of international involvement,because it is usually easier to drop or change arrangements as the firm's needs change.

Accepted Answer

A) True 
 B)False

Question 9

Roscoe Hardware carries stock of the complete line of Ever-Green Push Lawn Mowers.Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory.This situation creates

Accepted Answer

A) vertical channel conflict. 
B) exclusive distribution rights. 
C) a competitive discrepancy. 
D) horizontal channel conflict. 
E) reverse channels. 
A) vertical channel conflict. 
B) exclusive distribution rights. 
C) a competitive discrepancy. 
D) horizontal channel conflict. 
E) reverse channels.

Question 10

Direct marketing is

Accepted Answer

A) personal sales contact between a representative of the company and an individual consumer. 
B) primarily concerned with the degree of market exposure. 
C) direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. 
D) an effort to sell through only one intermediary. 
E) a strategy that works best when a producer has little working capital. 
A) personal sales contact between a representative of the company and an individual consumer. 
B) primarily concerned with the degree of market exposure. 
C) direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. 
D) an effort to sell through only one intermediary. 
E) a strategy that works best when a producer has little working capital.

Question 11

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products,while individual consumers prefer to buy a small assortment of products.

Accepted Answer

A) True 
 B)False

Question 12

A channel captain

Accepted Answer

A) might be any member of the channel (that is,at any level in the channel). 
B) views the members of the channel as a unit. 
C) should help to make the channel more efficient by reducing conflict. 
D) All these answers are correct. 
A) might be any member of the channel (that is,at any level in the channel). 
B) views the members of the channel as a unit. 
C) should help to make the channel more efficient by reducing conflict. 
D) All these answers are correct.

Question 13

Some channel conflict may be

Accepted Answer

A) inevitable when channel members have different objectives. 
B) useful if that is what it takes for customers at the end of the channel to receive better value. 
C) avoided when a producer does not sell identical products through different (competing)channels. 
D) reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities. 
E) All these answers are correct. 
A) inevitable when channel members have different objectives. 
B) useful if that is what it takes for customers at the end of the channel to receive better value. 
C) avoided when a producer does not sell identical products through different (competing)channels. 
D) reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities. 
E) All these answers are correct.

Question 14

Selective distribution

Accepted Answer

A) is likely to reduce high administrative expenses caused by a large proportion of small orders. 
B) may be suitable for all categories of products. 
C) is becoming more popular. 
D) is a good idea if some of the available intermediaries are not financially solid. 
E) All these answers are correct. 
A) is likely to reduce high administrative expenses caused by a large proportion of small orders. 
B) may be suitable for all categories of products. 
C) is becoming more popular. 
D) is a good idea if some of the available intermediaries are not financially solid. 
E) All these answers are correct.

Question 15

Barnes and Noble,a multichannel bookshop,discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost.This is an example of ________ channel conflict.

Accepted Answer

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

Question 16

Worldwide Drilling,Inc.of Fort Worth,Texas,operates an oil well in Russia for its owners.Worldwide is involved in

Accepted Answer

A) management contracting. 
B) exporting. 
C) a direct investment. 
D) a joint venture. 
E) licensing. 
A) management contracting. 
B) exporting. 
C) a direct investment. 
D) a joint venture. 
E) licensing.

Question 17

If a firm's involvement in international marketing is limited to managing others' production facilities,it is using

Accepted Answer

A) exporting. 
B) licensing. 
C) direct investment. 
D) a joint venture. 
E) management contracting. 
A) exporting. 
B) licensing. 
C) direct investment. 
D) a joint venture. 
E) management contracting.

Question 18

Digital products cost more to distribute than physical products.

Accepted Answer

A) True 
 B)False

Question 19

________ decisions often have long-run effects and are harder to change.

Accepted Answer

A) Product 
B) Promotion 
C) People 
D) Place 
E) Price 
A) Product 
B) Promotion 
C) People 
D) Place 
E) Price

Question 20

If Penn Hills Mfg.Corp.gives the Johnstown Distributing Co.the exclusive right to distribute Penn Hills' products in Ohio,with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio,the arrangement

Accepted Answer

A) would be illegal,because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal. 
B) might or might not be considered legal.The courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition. 
C) would be legal,because the courts have ruled that all vertical arrangements between producers and intermediaries are legal. 
D) would be illegal,because the courts have ruled that all horizontal arrangements between competitors are illegal. 
E) would be legal,because the courts have ruled that all horizontal arrangements between competitors are legal. 
A) would be illegal,because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal. 
B) might or might not be considered legal.The courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition. 
C) would be legal,because the courts have ruled that all vertical arrangements between producers and intermediaries are legal. 
D) would be illegal,because the courts have ruled that all horizontal arrangements between competitors are illegal. 
E) would be legal,because the courts have ruled that all horizontal arrangements between competitors are legal.

Why would a producer prefer direct distribution?

Vertical marketing systems account for a majority of U.S.retail sales.

Any contractual channel system,by definition,is also an administered channel system.

Marketers need to foster cooperation with various members of a channel system to prevent

The 80/20 rule is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Producers often use multichannel distribution because

Exporting has an advantage,compared to other types of international involvement,because it is usually easier to drop or change arrangements as the firm's needs change.

Roscoe Hardware carries stock of the complete line of Ever-Green Push Lawn Mowers.Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory.This situation creates

Direct marketing is

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products,while individual consumers prefer to buy a small assortment of products.

A channel captain

Some channel conflict may be

Selective distribution

Barnes and Noble,a multichannel bookshop,discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost.This is an example of ________ channel conflict.

Worldwide Drilling,Inc.of Fort Worth,Texas,operates an oil well in Russia for its owners.Worldwide is involved in

If a firm's involvement in international marketing is limited to managing others' production facilities,it is using

Digital products cost more to distribute than physical products.

________ decisions often have long-run effects and are harder to change.

If Penn Hills Mfg.Corp.gives the Johnstown Distributing Co.the exclusive right to distribute Penn Hills' products in Ohio,with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio,the arrangement

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

Why would a producer prefer direct distribution?

Vertical marketing systems account for a majority of U.S.retail sales.

Any contractual channel system,by definition,is also an administered channel system.

Marketers need to foster cooperation with various members of a channel system to prevent

The 80/20 rule is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Producers often use multichannel distribution because

Exporting has an advantage,compared to other types of international involvement,because it is usually easier to drop or change arrangements as the firm's needs change.

Roscoe Hardware carries stock of the complete line of Ever-Green Push Lawn Mowers.Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory.This situation creates

Direct marketing is

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products,while individual consumers prefer to buy a small assortment of products.

A channel captain

Some channel conflict may be

Selective distribution

Barnes and Noble,a multichannel bookshop,discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost.This is an example of ________ channel conflict.

Worldwide Drilling,Inc.of Fort Worth,Texas,operates an oil well in Russia for its owners.Worldwide is involved in

If a firm's involvement in international marketing is limited to managing others' production facilities,it is using

Digital products cost more to distribute than physical products.

________ decisions often have long-run effects and are harder to change.

If Penn Hills Mfg.Corp.gives the Johnstown Distributing Co.the exclusive right to distribute Penn Hills' products in Ohio,with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio,the arrangement

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