Question 1

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

Accepted Answer

A) marketing 
B) selling 
C) distribution 
D) servicing 
E) pricing 
A) marketing 
B) selling 
C) distribution 
D) servicing 
E) pricing

Question 2

To help producers manage discrepancies between what gets produced and what customers need,channel specialists perform ________ activities,such as accumulating,bulk-breaking,sorting,and assorting.

Accepted Answer

A) channel 
B) regrouping 
C) direct marketing 
D) promotion 
E) selective distribution 
A) channel 
B) regrouping 
C) direct marketing 
D) promotion 
E) selective distribution

Question 3

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

Accepted Answer

A) True 
 B)False

Question 4

A direct-to-customer channel

Accepted Answer

A) includes a retailer but not a wholesaler. 
B) usually helps the producer be more aware of changes in final customer attitudes. 
C) eliminates some of the marketing functions. 
D) is typical in reaching final consumer markets. 
E) is most suitable when a large number of transactions are required in the channel or when orders are smaller. 
A) includes a retailer but not a wholesaler. 
B) usually helps the producer be more aware of changes in final customer attitudes. 
C) eliminates some of the marketing functions. 
D) is typical in reaching final consumer markets. 
E) is most suitable when a large number of transactions are required in the channel or when orders are smaller.

Question 5

In a retailer-led channel system,

Accepted Answer

A) strategy decisions on Promotion are handled by retailers. 
B) strategy decisions on Price are completely handled by producers. 
C) strategy decisions regarding target customers are handled by producers. 
D) strategy decisions on Product are handled by retailers. 
E) strategy decisions on Place are not a concern for the retailers. 
A) strategy decisions on Promotion are handled by retailers. 
B) strategy decisions on Price are completely handled by producers. 
C) strategy decisions regarding target customers are handled by producers. 
D) strategy decisions on Product are handled by retailers. 
E) strategy decisions on Place are not a concern for the retailers.

Question 6

Channel conflict often results when a manufacturer opens a new distribution channel,especially if it directly competes with its existing intermediaries.

Accepted Answer

A) True 
 B)False

Question 7

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.
Which tennis ball manufacturer is involved in direct distribution?

Accepted Answer

A) World Tennis Ball 
B) American Tennis Ball 
C) National Tennis Ball 
D) All these firms use direct distribution. 
E) None of these firms uses direct distribution. 
A) World Tennis Ball 
B) American Tennis Ball 
C) National Tennis Ball 
D) All these firms use direct distribution. 
E) None of these firms uses direct distribution.

Question 8

Ideal market exposure should make a product available widely enough to satisfy target customers' needs but not exceed them.

Accepted Answer

A) True 
 B)False

Question 9

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This regrouping activity is called

Accepted Answer

A) bulk-breaking. 
B) assorting. 
C) sorting. 
D) wholesaling. 
E) accumulating. 
A) bulk-breaking. 
B) assorting. 
C) sorting. 
D) wholesaling. 
E) accumulating.

Question 10

Which of the following statements about ideal market exposure is true?

Accepted Answer

A) As a firm goes from exclusive to intensive distribution,it loses progressively more control over price and service offered by retailers. 
B) A producer should usually seek maximum market exposure. 
C) Intensive distribution means trying to sell through all retail stores. 
D) It is necessary to get almost 100 percent market exposure to justify national promotion. 
E) All these statements are true. 
A) As a firm goes from exclusive to intensive distribution,it loses progressively more control over price and service offered by retailers. 
B) A producer should usually seek maximum market exposure. 
C) Intensive distribution means trying to sell through all retail stores. 
D) It is necessary to get almost 100 percent market exposure to justify national promotion. 
E) All these statements are true.

Question 11

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

Accepted Answer

A) marketing 
B) selling 
C) distribution 
D) servicing 
E) pricing 
A) marketing 
B) selling 
C) distribution 
D) servicing 
E) pricing

Question 12

Traditional channel systems are growing faster than vertical marketing systems.

Accepted Answer

A) True 
 B)False

Question 13

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product that has achieved brand preference and sells for about $300?

Accepted Answer

A) concentrated distribution 
B) selective distribution 
C) administered distribution 
D) intensive distribution 
E) exclusive distribution 
A) concentrated distribution 
B) selective distribution 
C) administered distribution 
D) intensive distribution 
E) exclusive distribution

Question 14

________ channel conflict occurs between firms at the same level in the channel of distribution.

Accepted Answer

A) Vertical 
B) Diagonal 
C) Horizontal 
D) Parallel 
E) Cyclical 
A) Vertical 
B) Diagonal 
C) Horizontal 
D) Parallel 
E) Cyclical

Question 15

A channel of distribution

Accepted Answer

A) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B) is only needed when products must be stored. 
C) must include one or more intermediaries. 
D) is only needed when products are sold indirectly. 
E) None of these answers is correct. 
A) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B) is only needed when products must be stored. 
C) must include one or more intermediaries. 
D) is only needed when products are sold indirectly. 
E) None of these answers is correct.

Question 16

Which of the following is NOT an advantage of vertical integration?

Accepted Answer

A) lower executive overhead 
B) better control of distribution 
C) easier adjustment of discrepancies of quantity and assortment 
D) greater buying power 
E) stable sources of supplies 
A) lower executive overhead 
B) better control of distribution 
C) easier adjustment of discrepancies of quantity and assortment 
D) greater buying power 
E) stable sources of supplies

Question 17

Which of the following statements about exporting is FALSE?

Accepted Answer

A) Intermediaries can handle the arrangements as products are shipped outside the country. 
B) Channel relationships in international markets take time to build and shouldn't be treated lightly. 
C) Exporting requires a firm to establish permanent relationships with international partners. 
D) A firm often invests a minimal amount of time and money. 
A) Intermediaries can handle the arrangements as products are shipped outside the country. 
B) Channel relationships in international markets take time to build and shouldn't be treated lightly. 
C) Exporting requires a firm to establish permanent relationships with international partners. 
D) A firm often invests a minimal amount of time and money.

Question 18

Indirect channels are probably a better choice than direct channels when

Accepted Answer

A) the firm has limited financial resources. 
B) the product is a consumer product instead of a business product. 
C) target customers already have established buying patterns for where to search for the product. 
D) retailers are already conveniently located where consumers shop. 
E) All these answers are correct. 
A) the firm has limited financial resources. 
B) the product is a consumer product instead of a business product. 
C) target customers already have established buying patterns for where to search for the product. 
D) retailers are already conveniently located where consumers shop. 
E) All these answers are correct.

Question 19

Intensive distribution is often very appropriate for

Accepted Answer

A) shopping products and convenience products. 
B) convenience products and business supplies. 
C) business products of all classes. 
D) unsought products and specialty products. 
E) shopping,specialty,and unsought products. 
A) shopping products and convenience products. 
B) convenience products and business supplies. 
C) business products of all classes. 
D) unsought products and specialty products. 
E) shopping,specialty,and unsought products.

Question 20

Ideal market exposure means selling a product through all intermediaries willing to stock and sell it.

Accepted Answer

A) True 
 B)False

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

To help producers manage discrepancies between what gets produced and what customers need,channel specialists perform ________ activities,such as accumulating,bulk-breaking,sorting,and assorting.

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

A direct-to-customer channel

In a retailer-led channel system,

Channel conflict often results when a manufacturer opens a new distribution channel,especially if it directly competes with its existing intermediaries.

Ideal market exposure should make a product available widely enough to satisfy target customers' needs but not exceed them.

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This regrouping activity is called

Which of the following statements about ideal market exposure is true?

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

Traditional channel systems are growing faster than vertical marketing systems.

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product that has achieved brand preference and sells for about $300?

________ channel conflict occurs between firms at the same level in the channel of distribution.

A channel of distribution

Which of the following is NOT an advantage of vertical integration?

Which of the following statements about exporting is FALSE?

Indirect channels are probably a better choice than direct channels when

Intensive distribution is often very appropriate for

Ideal market exposure means selling a product through all intermediaries willing to stock and sell it.

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

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

To help producers manage discrepancies between what gets produced and what customers need,channel specialists perform ________ activities,such as accumulating,bulk-breaking,sorting,and assorting.

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

A direct-to-customer channel

In a retailer-led channel system,

Channel conflict often results when a manufacturer opens a new distribution channel,especially if it directly competes with its existing intermediaries.

Ideal market exposure should make a product available widely enough to satisfy target customers' needs but not exceed them.

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This regrouping activity is called

Which of the following statements about ideal market exposure is true?

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

Traditional channel systems are growing faster than vertical marketing systems.

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product that has achieved brand preference and sells for about $300?

________ channel conflict occurs between firms at the same level in the channel of distribution.

A channel of distribution

Which of the following is NOT an advantage of vertical integration?

Which of the following statements about exporting is FALSE?

Indirect channels are probably a better choice than direct channels when

Intensive distribution is often very appropriate for

Ideal market exposure means selling a product through all intermediaries willing to stock and sell it.

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