Question 1

When planning channels of distribution,a marketing manager should know that

Accepted Answer

A) vertically integrated systems are seldom used,because of the difficulty of maintaining control. 
B) a contractual system offers both flexibility and stability for its members. 
C) the disadvantage of a corporate channel system is reduced control over distribution activities. 
D) the disadvantage of an administered system is that it is a very formal arrangement. 
E) None of these answers is correct. 
A) vertically integrated systems are seldom used,because of the difficulty of maintaining control. 
B) a contractual system offers both flexibility and stability for its members. 
C) the disadvantage of a corporate channel system is reduced control over distribution activities. 
D) the disadvantage of an administered system is that it is a very formal arrangement. 
E) None of these answers is correct.

Question 2

Which of the following is NOT a likely advantage of vertical integration?

Accepted Answer

A) lower capital requirements 
B) lower executive overhead 
C) better control of distribution 
D) better quality control 
E) greater buying power 
A) lower capital requirements 
B) lower executive overhead 
C) better control of distribution 
D) better quality control 
E) greater buying power

Question 3

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Accepted Answer

A) True 
 B)False

Question 4

Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co.The Rapier product line includes kitchen knives,hunting knives,and other special-purpose cutlery.Ravi makes sales presentations to potential customers in their homes.If a customer wants to make a purchase,Ravi buys the knives from Rapier and sells them to the customer at a markup.For example,Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50.Ravi is

Accepted Answer

A) part of a direct-to-customer channel. 
B) engaged in direct marketing. 
C) engaged in direct selling but is part of an indirect channel. 
D) None of these answers is correct. 
A) part of a direct-to-customer channel. 
B) engaged in direct marketing. 
C) engaged in direct selling but is part of an indirect channel. 
D) None of these answers is correct.

Question 5

Consumers usually want to shop for milk,meat,vegetables,and fruits at one convenient location.Grocery stores that offer all these products help to alleviate this

Accepted Answer

A) discrepancy of quantity. 
B) accumulation deficit. 
C) sorting error. 
D) discrepancy of assortment. 
E) bulk-breaking. 
A) discrepancy of quantity. 
B) accumulation deficit. 
C) sorting error. 
D) discrepancy of assortment. 
E) bulk-breaking.

Question 6

________ means selling a product only through those intermediaries who will give the product special attention.

Accepted Answer

A) Multichannel distribution 
B) Selective distribution 
C) Administered distribution 
D) Exclusive distribution 
E) Intensive distribution 
A) Multichannel distribution 
B) Selective distribution 
C) Administered distribution 
D) Exclusive distribution 
E) Intensive distribution

Question 7

________ channel conflict occurs between firms at different levels 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 8

InterContinental Hardware Co.buys carload quantities of bolts,screws,nuts,washers,and other hardware from a large producer in the Netherlands,breaks these shipments into smaller quantities,and sells them to other wholesalers and retail chains.This regrouping activity is called

Accepted Answer

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

Question 9

The regrouping activity that involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called

Accepted Answer

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

Question 10

Business products tend to be sold direct to customers because

Accepted Answer

A) business markets have more transactions. 
B) the orders are small in size. 
C) e-commerce systems can efficiently handle orders once relationships are established. 
D) customers are usually widely dispersed across geographic areas. 
E) these products always use direct distribution. 
A) business markets have more transactions. 
B) the orders are small in size. 
C) e-commerce systems can efficiently handle orders once relationships are established. 
D) customers are usually widely dispersed across geographic areas. 
E) these products always use direct distribution.

Question 11

Bulk-breaking

Accepted Answer

A) means putting together a variety of products to give a target market what it wants. 
B) involves collecting products from many small producers. 
C) involves dividing larger quantities into smaller quantities as products get closer to the final market. 
D) means separating products into grades and qualities desired by different target markets. 
E) is most important with specialized producers of professional services. 
A) means putting together a variety of products to give a target market what it wants. 
B) involves collecting products from many small producers. 
C) involves dividing larger quantities into smaller quantities as products get closer to the final market. 
D) means separating products into grades and qualities desired by different target markets. 
E) is most important with specialized producers of professional services.

Question 12

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco),department stores,furniture stores,and specialty bedding stores.To avoid conflict with channel members,the marketing manager should

Accepted Answer

A) offer purchase discounts based on the quantity of mattresses that the retailer sells. 
B) assume that all channel members have a common commitment to target consumers at the end of the channel. 
C) trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer. 
D) develop different brands or product lines for different channels. 
E) expect one of the large retail chains to step up to the responsibilities of being the channel captain. 
A) offer purchase discounts based on the quantity of mattresses that the retailer sells. 
B) assume that all channel members have a common commitment to target consumers at the end of the channel. 
C) trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer. 
D) develop different brands or product lines for different channels. 
E) expect one of the large retail chains to step up to the responsibilities of being the channel captain.

Question 13

The regrouping activity that involves putting together a variety of products to give a target market what it wants is called

Accepted Answer

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

Question 14

Regarding the distribution of digital products,which of the following statements is accurate?

Accepted Answer

A) Regrouping activities by a channel specialist can add value to the distribution of digital products. 
B) Digital products do not require distribution. 
C) Distribution of digital products can be very costly. 
D) Digital products do not face the same discrepancies as tangible goods. 
E) There would never be a need for channel specialist to handle the distribution of digital products. 
A) Regrouping activities by a channel specialist can add value to the distribution of digital products. 
B) Digital products do not require distribution. 
C) Distribution of digital products can be very costly. 
D) Digital products do not face the same discrepancies as tangible goods. 
E) There would never be a need for channel specialist to handle the distribution of digital products.

Question 15

A good channel captain knows that

Accepted Answer

A) direct-to-customer channels usually cost less and perform more efficiently than indirect channels. 
B) marketing functions can be shifted and shared within a channel but they cannot be completely eliminated. 
C) a traditional channel system works best. 
D) some marketing functions can usually be completely eliminated by using short channels instead of long channels. 
E) None of these answers is correct. 
A) direct-to-customer channels usually cost less and perform more efficiently than indirect channels. 
B) marketing functions can be shifted and shared within a channel but they cannot be completely eliminated. 
C) a traditional channel system works best. 
D) some marketing functions can usually be completely eliminated by using short channels instead of long channels. 
E) None of these answers is correct.

Question 16

In a licensing agreement,the licensee

Accepted Answer

A) makes no initial investment to get started. 
B) does most of the marketing strategy planning for the markets it is licensed to serve. 
C) has more control over marketing than other approaches for entering international markets. 
D) assumes almost no risk in a foreign market. 
E) does not pay any fee or royalties to the licensor. 
A) makes no initial investment to get started. 
B) does most of the marketing strategy planning for the markets it is licensed to serve. 
C) has more control over marketing than other approaches for entering international markets. 
D) assumes almost no risk in a foreign market. 
E) does not pay any fee or royalties to the licensor.

Question 17

Which of the following statements about Place is true?

Accepted Answer

A) Most consumer products and most business products are sold to intermediaries,who then sell them to final customers. 
B) Place decisions are usually harder to change than other marketing mix decisions. 
C) There is always one Place arrangement that is "best" for a product. 
D) A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. 
E) None of these statements is true. 
A) Most consumer products and most business products are sold to intermediaries,who then sell them to final customers. 
B) Place decisions are usually harder to change than other marketing mix decisions. 
C) There is always one Place arrangement that is "best" for a product. 
D) A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. 
E) None of these statements is true.

Question 18

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 19

The owners of all the Chrysler auto dealerships in a large metropolitan area have an informal meeting during a golf outing.During the meeting,they agree to limit their orders of a new model of automobile that has received excellent reviews from the trade press for its styling and handling characteristics.Restricting orders will permit the dealers to sell these models at a price that will be at or above the manufacturer's suggested retail price for the vehicle.As a result,the dealers will make more profit on each vehicle sold,due to the high demand for the new model.This type of agreement would be viewed by the courts as

Accepted Answer

A) horizontal collusion that is illegal. 
B) horizontal collusion that is legal. 
C) vertical collusion that is legal. 
D) vertical collusion that is illegal. 
E) an exclusive distribution arrangement that is legal. 
A) horizontal collusion that is illegal. 
B) horizontal collusion that is legal. 
C) vertical collusion that is legal. 
D) vertical collusion that is illegal. 
E) an exclusive distribution arrangement that is legal.

Question 20

Which of the following statements about direct channel systems is FALSE?

Accepted Answer

A) There is no reliance on independent intermediaries whose objectives may be different from the producer's objectives. 
B) Suitable intermediaries are always available even when they're needed at the last minute. 
C) The producer can be more aware of changes in customer attitudes. 
D) Direct channels are more typical with business products than with consumer products. 
A) There is no reliance on independent intermediaries whose objectives may be different from the producer's objectives. 
B) Suitable intermediaries are always available even when they're needed at the last minute. 
C) The producer can be more aware of changes in customer attitudes. 
D) Direct channels are more typical with business products than with consumer products.

When planning channels of distribution,a marketing manager should know that

Which of the following is NOT a likely advantage of vertical integration?

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Consumers usually want to shop for milk,meat,vegetables,and fruits at one convenient location.Grocery stores that offer all these products help to alleviate this

________ means selling a product only through those intermediaries who will give the product special attention.

________ channel conflict occurs between firms at different levels in the channel of distribution.

InterContinental Hardware Co.buys carload quantities of bolts,screws,nuts,washers,and other hardware from a large producer in the Netherlands,breaks these shipments into smaller quantities,and sells them to other wholesalers and retail chains.This regrouping activity is called

The regrouping activity that involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called

Business products tend to be sold direct to customers because

Bulk-breaking

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco),department stores,furniture stores,and specialty bedding stores.To avoid conflict with channel members,the marketing manager should

The regrouping activity that involves putting together a variety of products to give a target market what it wants is called

Regarding the distribution of digital products,which of the following statements is accurate?

A good channel captain knows that

In a licensing agreement,the licensee

Which of the following statements about Place is true?

Discrepancy of assortment means

Which of the following statements about direct channel systems 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

When planning channels of distribution,a marketing manager should know that

Which of the following is NOT a likely advantage of vertical integration?

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Consumers usually want to shop for milk,meat,vegetables,and fruits at one convenient location.Grocery stores that offer all these products help to alleviate this

________ means selling a product only through those intermediaries who will give the product special attention.

________ channel conflict occurs between firms at different levels in the channel of distribution.

InterContinental Hardware Co.buys carload quantities of bolts,screws,nuts,washers,and other hardware from a large producer in the Netherlands,breaks these shipments into smaller quantities,and sells them to other wholesalers and retail chains.This regrouping activity is called

The regrouping activity that involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called

Business products tend to be sold direct to customers because

Bulk-breaking

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco),department stores,furniture stores,and specialty bedding stores.To avoid conflict with channel members,the marketing manager should

The regrouping activity that involves putting together a variety of products to give a target market what it wants is called

Regarding the distribution of digital products,which of the following statements is accurate?

A good channel captain knows that

In a licensing agreement,the licensee

Which of the following statements about Place is true?

Discrepancy of assortment means

Which of the following statements about direct channel systems 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