Question 1

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Accepted Answer

A) True 
 B)False

Question 2

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

Accepted Answer

A) True 
 B)False

Question 3

A manufacturer that uses several competing channels to reach the same target market is using multichannel distribution.

Accepted Answer

A) True 
 B)False

Question 4

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Accepted Answer

A) True 
 B)False

Question 5

Product recalls,returns,and recycling plans require some firms to use

Accepted Answer

A) vertical integration. 
B) contractual channel systems. 
C) exclusive distribution. 
D) selective distribution. 
E) reverse channels. 
A) vertical integration. 
B) contractual channel systems. 
C) exclusive distribution. 
D) selective distribution. 
E) reverse channels.

Question 6

Vertical agreements to limit sales by customer or territory are always illegal,while horizontal agreements may be legal sometimes.

Accepted Answer

A) True 
 B)False

Question 7

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time.But a bookstore orders only a few copies of each book,since its customers want to select from a wide variety.This example shows

Accepted Answer

A) why discrepancies of quantity occur. 
B) why both discrepancies of quantity and discrepancies of assortment occur. 
C) neither discrepancies of assortment nor discrepancies of quantity. 
D) why discrepancies of assortment occur. 
E) multichannel distribution. 
A) why discrepancies of quantity occur. 
B) why both discrepancies of quantity and discrepancies of assortment occur. 
C) neither discrepancies of assortment nor discrepancies of quantity. 
D) why discrepancies of assortment occur. 
E) multichannel distribution.

Question 8

One disadvantage of direct-to-customer channels is that

Accepted Answer

A) most organizational buyers are used to relying on intermediaries to serve as their purchasing advisors. 
B) they require producers to shift many marketing functions to others. 
C) this approach makes it hard to achieve coordination among the required marketing activities. 
D) they make it more difficult to get information about changing needs of the market. 
E) None of these answers is correct. 
A) most organizational buyers are used to relying on intermediaries to serve as their purchasing advisors. 
B) they require producers to shift many marketing functions to others. 
C) this approach makes it hard to achieve coordination among the required marketing activities. 
D) they make it more difficult to get information about changing needs of the market. 
E) None of these answers is correct.

Question 9

In international markets,a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

Accepted Answer

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

Question 10

Reverse channels are used when multichannel distribution fails.

Accepted Answer

A) True 
 B)False

Question 11

Sofia Martin sells Mary Kay cosmetics.She hosts parties,provides product knowledge,and places orders for her customers with Mary Kay.Mary Kay considers Sofia to be an independent dealer of their product.Regarding this situation,which of the following statements is accurate?

Accepted Answer

A) Sofia is not an employee,so in a strict technical sense her sales are not direct distribution. 
B) Sofia is an independent dealer,so the communication between her and her clients is considered direct marketing. 
C) Sofia is engaging in classic indirect distribution. 
D) Sofia is a licensee,which gives her exclusive rights to directly distribute Mary Kay products. 
E) None of these answers is correct. 
A) Sofia is not an employee,so in a strict technical sense her sales are not direct distribution. 
B) Sofia is an independent dealer,so the communication between her and her clients is considered direct marketing. 
C) Sofia is engaging in classic indirect distribution. 
D) Sofia is a licensee,which gives her exclusive rights to directly distribute Mary Kay products. 
E) None of these answers is correct.

Question 12

Which of the following is NOT one of the degrees of market exposure?

Accepted Answer

A) selective distribution 
B) multichannel distribution 
C) intensive distribution 
D) exclusive distribution 
A) selective distribution 
B) multichannel distribution 
C) intensive distribution 
D) exclusive distribution

Question 13

Which of the following is true of a producer-led channel system?

Accepted Answer

A) The intermediaries do not support the producer at any stage. 
B) The system is implemented when producers are small. 
C) Intermediaries select the target market,while producers develop the product. 
D) The system is effective when a producer's brand requires penetration pricing. 
E) Producers fix the prices of their offerings. 
A) The intermediaries do not support the producer at any stage. 
B) The system is implemented when producers are small. 
C) Intermediaries select the target market,while producers develop the product. 
D) The system is effective when a producer's brand requires penetration pricing. 
E) Producers fix the prices of their offerings.

Question 14

From a producer's viewpoint,which of the following is an advantage of intensive distribution over selective distribution?

Accepted Answer

A) Intermediaries' price-cutting may be reduced. 
B) Intermediaries' facilities will be more convenient for customers. 
C) Intermediaries can be required to carry larger stocks. 
D) More aggressive selling can be expected from intermediaries. 
E) Better service can be required from intermediaries. 
A) Intermediaries' price-cutting may be reduced. 
B) Intermediaries' facilities will be more convenient for customers. 
C) Intermediaries can be required to carry larger stocks. 
D) More aggressive selling can be expected from intermediaries. 
E) Better service can be required from intermediaries.

Question 15

Discrepancy of assortment means

Accepted Answer

A) some producers can produce more products than others. 
B) some consumers buy more products than others. 
C) consumers want more output than producers can make. 
D) there are more producers than wholesalers. 
E) the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users. 
A) some producers can produce more products than others. 
B) some consumers buy more products than others. 
C) consumers want more output than producers can make. 
D) there are more producers than wholesalers. 
E) the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.

Question 16

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 of the following describes WTB's channel arrangements?

Accepted Answer

A) intensive distribution 
B) corporate channel system 
C) exclusive distribution 
D) traditional channel system 
E) reverse channels 
A) intensive distribution 
B) corporate channel system 
C) exclusive distribution 
D) traditional channel system 
E) reverse channels

Question 17

A computer manufacturer runs training programs for its cooperating retailers' salespeople,as well as providing newspaper advertising layouts,point-of-purchase materials,and sales manuals.This is an example of a(n)

Accepted Answer

A) administered channel system. 
B) contractual channel system. 
C) traditional channel system. 
D) vertically integrated corporate channel system. 
E) franchising system. 
A) administered channel system. 
B) contractual channel system. 
C) traditional channel system. 
D) vertically integrated corporate channel system. 
E) franchising system.

Question 18

Intensive distribution

Accepted Answer

A) gives a retailer more incentive to promote a product than he or she would have with exclusive distribution. 
B) is not very likely to be used in combination with multichannel distribution. 
C) is more likely to be used with relatively high-priced products than with low-priced products. 
D) is often used for convenience products and business supplies. 
E) None of these answers is correct. 
A) gives a retailer more incentive to promote a product than he or she would have with exclusive distribution. 
B) is not very likely to be used in combination with multichannel distribution. 
C) is more likely to be used with relatively high-priced products than with low-priced products. 
D) is often used for convenience products and business supplies. 
E) None of these answers is correct.

Question 19

For heterogeneous shopping goods,marketers should

Accepted Answer

A) utilize knowledgeable salespeople who can provide insights about different brands and models. 
B) sell through low-cost retailers. 
C) avoid selling through online stores. 
D) provide limited customer support,as customers focus mostly on low prices. 
E) keep the level of the salesforce in the retail stores to the lowest level possible. 
A) utilize knowledgeable salespeople who can provide insights about different brands and models. 
B) sell through low-cost retailers. 
C) avoid selling through online stores. 
D) provide limited customer support,as customers focus mostly on low prices. 
E) keep the level of the salesforce in the retail stores to the lowest level possible.

Question 20

Which of the following statements about Place is FALSE?

Accepted Answer

A) Most consumer products move from producer to intermediaries to final customer. 
B) A series of participants in the flow of goods and services from producer to final customer is called a channel of distribution. 
C) There is always one Place arrangement that is "best" for a product. 
D) Intermediaries develop to adjust discrepancies in quantity and assortment. 
A) Most consumer products move from producer to intermediaries to final customer. 
B) A series of participants in the flow of goods and services from producer to final customer is called a channel of distribution. 
C) There is always one Place arrangement that is "best" for a product. 
D) Intermediaries develop to adjust discrepancies in quantity and assortment.

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

A manufacturer that uses several competing channels to reach the same target market is using multichannel distribution.

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Product recalls,returns,and recycling plans require some firms to use

Vertical agreements to limit sales by customer or territory are always illegal,while horizontal agreements may be legal sometimes.

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time.But a bookstore orders only a few copies of each book,since its customers want to select from a wide variety.This example shows

One disadvantage of direct-to-customer channels is that

In international markets,a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

Reverse channels are used when multichannel distribution fails.

Sofia Martin sells Mary Kay cosmetics.She hosts parties,provides product knowledge,and places orders for her customers with Mary Kay.Mary Kay considers Sofia to be an independent dealer of their product.Regarding this situation,which of the following statements is accurate?

Which of the following is NOT one of the degrees of market exposure?

Which of the following is true of a producer-led channel system?

From a producer's viewpoint,which of the following is an advantage of intensive distribution over selective distribution?

Discrepancy of assortment means

A computer manufacturer runs training programs for its cooperating retailers' salespeople,as well as providing newspaper advertising layouts,point-of-purchase materials,and sales manuals.This is an example of a(n)

Intensive distribution

For heterogeneous shopping goods,marketers should

Which of the following statements about Place is FALSE?

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

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

A manufacturer that uses several competing channels to reach the same target market is using multichannel distribution.

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Product recalls,returns,and recycling plans require some firms to use

Vertical agreements to limit sales by customer or territory are always illegal,while horizontal agreements may be legal sometimes.

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time.But a bookstore orders only a few copies of each book,since its customers want to select from a wide variety.This example shows

One disadvantage of direct-to-customer channels is that

In international markets,a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

Reverse channels are used when multichannel distribution fails.

Sofia Martin sells Mary Kay cosmetics.She hosts parties,provides product knowledge,and places orders for her customers with Mary Kay.Mary Kay considers Sofia to be an independent dealer of their product.Regarding this situation,which of the following statements is accurate?

Which of the following is NOT one of the degrees of market exposure?

Which of the following is true of a producer-led channel system?

From a producer's viewpoint,which of the following is an advantage of intensive distribution over selective distribution?

Discrepancy of assortment means

A computer manufacturer runs training programs for its cooperating retailers' salespeople,as well as providing newspaper advertising layouts,point-of-purchase materials,and sales manuals.This is an example of a(n)

Intensive distribution

For heterogeneous shopping goods,marketers should

Which of the following statements about Place is FALSE?

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