Question 1

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 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 salesforce in the retail stores to the lowest level possible.

Question 2

Which of the following is NOT one of the "regrouping activities?"

Accepted Answer

A)  Assorting 
B)  Ranking 
C)  Sorting 
D)  Bulk-breaking 
E)  Accumulating 
A)  Assorting 
B)  Ranking 
C)  Sorting 
D)  Bulk-breaking 
E)  Accumulating

Question 3

Which of the following best illustrates "discrepancies 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 U.S. 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 U.S. 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

Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called:

Accepted Answer

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Costco is a warehouse store that sells groceries, household items, and business products. Purchase quantities tend to be larger than in traditional stores that serve final consumers. For example, soft drinks are only sold in 24-can cases, not in 6-packs. Coffee is sold in 3-pound cans instead of one-pound foil packs. Which regrouping activity is Costco shifting to the consumer?

Accepted Answer

A)  Accumulating. 
B)  Adjusting discrepancies. 
C)  Assorting. 
D)  Bulk-breaking. 
E)  Sorting. 
A)  Accumulating. 
B)  Adjusting discrepancies. 
C)  Assorting. 
D)  Bulk-breaking. 
E)  Sorting.

Question 8

Which of the following is not a benefit that an intermediary is likely to provide for producer-suppliers?

Accepted Answer

A)  reduce credit risk 
B)  reduce the need to store inventory 
C)  reduce the need for marketing research 
D)  reduce the need for working capital 
E)  All of these are likely benefits provided to suppliers. 
A)  reduce credit risk 
B)  reduce the need to store inventory 
C)  reduce the need for marketing research 
D)  reduce the need for working capital 
E)  All of these are likely benefits provided to suppliers.

Question 9

A wholesaler might help a producer by reducing the producer's need to carry large inventory stocks.

Accepted Answer

A) True 
 B)False

Question 10

Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

Accepted Answer

A) True 
 B)False

Question 11

When Amazon.com collects products from many small producers, the company is involved in _____.

Accepted Answer

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

Question 12

A common "product-market commitment" in a channel system helps to eliminate:

Accepted Answer

A)  the need for a channel captain. 
B)  unnecessary and costly duplication of marketing functions. 
C)  all production-oriented channel members. 
D)  competition among different channel systems. 
E)  the need for marketing managers in individual firms. 
A)  the need for a channel captain. 
B)  unnecessary and costly duplication of marketing functions. 
C)  all production-oriented channel members. 
D)  competition among different channel systems. 
E)  the need for marketing managers in individual firms.

Question 13

Multichannel distribution:

Accepted Answer

A)  may involve using both direct and indirect channels simultaneously. 
B)  may offer producers a way to reach customers they would not be able to reach with a single channel. 
C)  is becoming more common. 
D)  may create channel conflict. 
E)  All of these alternatives are correct. 
A)  may involve using both direct and indirect channels simultaneously. 
B)  may offer producers a way to reach customers they would not be able to reach with a single channel. 
C)  is becoming more common. 
D)  may create channel conflict. 
E)  All of these alternatives are correct.

Question 14

Assorting activities involve putting together a variety of products to give a target market what it wants.

Accepted Answer

A) True 
 B)False

Question 15

_____ means separating products into grades and qualities as desired by different target markets.

Accepted Answer

A)  Bulk-breaking 
B)  Sorting 
C)  Accumulating 
D)  Assorting 
E)  Discrepancy of quality 
A)  Bulk-breaking 
B)  Sorting 
C)  Accumulating 
D)  Assorting 
E)  Discrepancy of quality

Question 16

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:

Accepted Answer

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

Question 17

Most traditional channel systems don't have a channel captain.

Accepted Answer

A) True 
 B)False

Question 18

For homogeneous shopping goods, marketers favor low-cost retailers primarily because:

Accepted Answer

A)  customers focus on low prices. 
B)  customers focus on low quality. 
C)  customers focus on broad product assortments. 
D)  low-cost retailers provide extensive customer support. 
E)  low-cost retailers have many outlets close to customers. 
A)  customers focus on low prices. 
B)  customers focus on low quality. 
C)  customers focus on broad product assortments. 
D)  low-cost retailers provide extensive customer support. 
E)  low-cost retailers have many outlets close to customers.

Question 19

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which 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 20

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:

Accepted Answer

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

For heterogeneous shopping goods, marketers should:

Which of the following is NOT one of the "regrouping activities?"

Which of the following best illustrates "discrepancies of quantity"?

Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called:

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

Which of the following is not a benefit that an intermediary is likely to provide for producer-suppliers?

A wholesaler might help a producer by reducing the producer's need to carry large inventory stocks.

Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

When Amazon.com collects products from many small producers, the company is involved in _____.

A common "product-market commitment" in a channel system helps to eliminate:

Multichannel distribution:

Assorting activities involve putting together a variety of products to give a target market what it wants.

_____ means separating products into grades and qualities as desired by different target markets.

Most traditional channel systems don't have a channel captain.

For homogeneous shopping goods, marketers favor low-cost retailers primarily because:

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

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:

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

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

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

Filters

Exam 10: Place and Development of Channel Systems

For heterogeneous shopping goods, marketers should:

Which of the following is NOT one of the "regrouping activities?"

Which of the following best illustrates "discrepancies of quantity"?

Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called:

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

Which of the following is not a benefit that an intermediary is likely to provide for producer-suppliers?

A wholesaler might help a producer by reducing the producer's need to carry large inventory stocks.

Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

When Amazon.com collects products from many small producers, the company is involved in _____.

A common "product-market commitment" in a channel system helps to eliminate:

Multichannel distribution:

Assorting activities involve putting together a variety of products to give a target market what it wants.

_____ means separating products into grades and qualities as desired by different target markets.

Most traditional channel systems don't have a channel captain.

For homogeneous shopping goods, marketers favor low-cost retailers primarily because:

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

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:

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

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

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

Filters