Exam 10: Place and Development of Channel Systems

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To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as:

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Bulk-breaking

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A company may be inclined to use both direct and indirect channels of distribution:

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When Fresh Produce Wholesaler Inc. buys fruits and vegetables from a variety of different farmers, and then takes large bushels and breaks them into smaller package sizes, Fresh Produce is addressing

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Direct investment in a foreign market involves the biggest commitment and the biggest risk.

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Intensive distribution at the retail level would probably be most appropriate for:

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Business products tend to be sold direct to customers because compared to consumer products:

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The text suggests that a "channel captain" should be:

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In general, marketers that seek greater control over their marketing mixes in the international environment will:

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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.

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

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One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

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Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the heterogeneous commodities into homogeneous lots according to grade and quality, and then sells them to retailers. This "regrouping activity" is called:

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

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A producer using several competing channels to distribute its products to its target market is using ______________ distribution.

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

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

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"Discrepancies of quantity" means:

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Management contracting is a relatively low risk way of entering foreign markets, since no commitment is made to fixed facilities.

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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:

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