Question 1

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

Accepted Answer

A)  bulk-breaking. 
B)  sorting. 
C)  accumulating. 
D)  assorting. 
E)  discrepancy of quantity. 
A)  bulk-breaking. 
B)  sorting. 
C)  accumulating. 
D)  assorting. 
E)  discrepancy of quantity.

Question 2

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Accepted Answer

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

Question 3

Use this information for question that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. 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 6 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 of the firms use direct distribution 
E)  None of the firms use direct distribution 
A)  World Tennis Ball 
B)  American Tennis Ball 
C)  National Tennis Ball 
D)  All of the firms use direct distribution 
E)  None of the firms use direct distribution

Question 4

____ 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 5

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Accepted Answer

A) True 
 B)False

Question 6

Worldwide Drilling, Inc. of Fort Worth, Texas, operates an oil well in Russia for its owners. Worldwide is involved in:

Accepted Answer

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

Question 7

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

Accepted Answer

A)  administered 
B)  intensive 
C)  horizontal 
D)  selective 
E)  exclusive 
A)  administered 
B)  intensive 
C)  horizontal 
D)  selective 
E)  exclusive

Question 8

All of the following are regrouping activities EXCEPT

Accepted Answer

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

Question 9

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

Accepted Answer

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

Question 10

Channel specialists provide value to producers in the following circumstance:

Accepted Answer

A)  when producers are located far from their customers and may not know how best to reach them. 
B)  when the assortment and quantity of products customers want matches the assortment and quantity of products companies produce. 
C)  when customers are well informed about their product choices. 
D)  when producers and customers exist in the same location. 
E)  when customers prefer online purchasing. 
A)  when producers are located far from their customers and may not know how best to reach them. 
B)  when the assortment and quantity of products customers want matches the assortment and quantity of products companies produce. 
C)  when customers are well informed about their product choices. 
D)  when producers and customers exist in the same location. 
E)  when customers prefer online purchasing.

Question 11

Accumulating involves dividing larger quantities into smaller quantities as products get closer to the final market.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Accepted Answer

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

Question 14

Selling products manufactured in the United States to foreign customers-often without any product changes-is called:

Accepted Answer

A)  joint ventures. 
B)  licensing. 
C)  importing. 
D)  contract manufacturing. 
E)  exporting. 
A)  joint ventures. 
B)  licensing. 
C)  importing. 
D)  contract manufacturing. 
E)  exporting.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

Accepted Answer

A)  Discrepancy of assortment 
B)  Discrepancy of information 
C)  Discrepancy of quantity 
D)  Discrepancy of quality 
E)  Discrepancy of image 
A)  Discrepancy of assortment 
B)  Discrepancy of information 
C)  Discrepancy of quantity 
D)  Discrepancy of quality 
E)  Discrepancy of image

Question 17

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 18

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 19

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT a Place decision?

Accepted Answer

A)  Types of intermediaries needed. 
B)  Degree of market exposure desired. 
C)  Recruiting, selecting and managing the sales force. 
D)  Type of distribution channel to use. 
E)  Customer service level desired. 
A)  Types of intermediaries needed. 
B)  Degree of market exposure desired. 
C)  Recruiting, selecting and managing the sales force. 
D)  Type of distribution channel to use. 
E)  Customer service level desired.

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

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

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Worldwide Drilling, Inc. of Fort Worth, Texas, operates an oil well in Russia for its owners. Worldwide is involved in:

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

All of the following are regrouping activities EXCEPT

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

Channel specialists provide value to producers in the following circumstance:

Accumulating involves dividing larger quantities into smaller quantities as products get closer to the final market.

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

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Selling products manufactured in the United States to foreign customers-often without any product changes-is called:

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

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

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.

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Which of the following is NOT a Place decision?

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

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

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

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Worldwide Drilling, Inc. of Fort Worth, Texas, operates an oil well in Russia for its owners. Worldwide is involved in:

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

All of the following are regrouping activities EXCEPT

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

Channel specialists provide value to producers in the following circumstance:

Accumulating involves dividing larger quantities into smaller quantities as products get closer to the final market.

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

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Selling products manufactured in the United States to foreign customers-often without any product changes-is called:

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

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

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.

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Which of the following is NOT a Place decision?

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