Question 1

Intermediaries in indirect channels of distribution:

Accepted Answer

A)  Often perform functions that producers cannot perform efficiently by themselves. 
B)  Do not provide additional convenience to consumers. 
C)  Increase the need for producers to make large investments in distribution facilities and personnel. 
D)  Make it necessary for producers to carry more inventories. 
E)  None of these alternatives is correct. 
A)  Often perform functions that producers cannot perform efficiently by themselves. 
B)  Do not provide additional convenience to consumers. 
C)  Increase the need for producers to make large investments in distribution facilities and personnel. 
D)  Make it necessary for producers to carry more inventories. 
E)  None of these alternatives is correct.

Question 2

Channels of distribution:

Accepted Answer

A)  that include intermediaries result in higher distribution costs than channels without intermediaries. 
B)  should be designed to increase discrepancies of quantity between producers and consumers. 
C)  usually do not involve conflicts as long as each channel member has profit as a goal. 
D)  usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly. 
E)  are always characterized by conflict among channel members. 
A)  that include intermediaries result in higher distribution costs than channels without intermediaries. 
B)  should be designed to increase discrepancies of quantity between producers and consumers. 
C)  usually do not involve conflicts as long as each channel member has profit as a goal. 
D)  usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly. 
E)  are always characterized by conflict among channel members.

Question 3

A large food retailer acquiring a cheese factory is an example of:

Accepted Answer

A)  dual distribution. 
B)  vertical integration. 
C)  a tying contract. 
D)  horizontal integration. 
E)  internal expansion. 
A)  dual distribution. 
B)  vertical integration. 
C)  a tying contract. 
D)  horizontal integration. 
E)  internal expansion.

Question 4

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 5

"Discrepancies of quantity" means:

Accepted Answer

A)  there are more producers than consumers. 
B)  there are more consumers than producers. 
C)  the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users. 
D)  consumers want more products than producers can make. 
E)  the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users. 
A)  there are more producers than consumers. 
B)  there are more consumers than producers. 
C)  the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users. 
D)  consumers want more products than producers can make. 
E)  the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.

Question 6

Which of the following statements about direct-to-customer channels is False?

Accepted Answer

A)  Most consumer products are sold via direct-to-customer channels. 
B)  Producers must sometimes use direct-to-customer channels because suitable intermediaries are not available. 
C)  Many business products are sold via direct-to-customer channels. 
D)  Service firms often use direct-to-customer channels. 
E)  "Direct marketing" does not mean that a firm uses direct-to-customer channels. 
A)  Most consumer products are sold via direct-to-customer channels. 
B)  Producers must sometimes use direct-to-customer channels because suitable intermediaries are not available. 
C)  Many business products are sold via direct-to-customer channels. 
D)  Service firms often use direct-to-customer channels. 
E)  "Direct marketing" does not mean that a firm uses direct-to-customer channels.

Question 7

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Accepted Answer

A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation. 
A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation.

Question 8

Which of the following is NOT a true statement about traditional channel systems?

Accepted Answer

A)  Channel members make little or no effort to cooperate with each other. 
B)  Channel members buy and sell from each other. 
C)  Each channel member does only what it considers to be in its own best interest. 
D)  Members of these channels have their independence, but they may pay for it too. 
E)  Control is maintained by economic power and leadership. 
A)  Channel members make little or no effort to cooperate with each other. 
B)  Channel members buy and sell from each other. 
C)  Each channel member does only what it considers to be in its own best interest. 
D)  Members of these channels have their independence, but they may pay for it too. 
E)  Control is maintained by economic power and leadership.

Question 9

The lowest cost and lowest risk way to enter a foreign market is through

Accepted Answer

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

Question 10

"Selective distribution" means selling through:

Accepted Answer

A)  retailers but not wholesalers. 
B)  multichannel distribution. 
C)  all responsible and suitable wholesalers. 
D)  only those wholesalers and retailers who give the product special attention. 
E)  only one wholesaler or retailer in each geographic area. 
A)  retailers but not wholesalers. 
B)  multichannel distribution. 
C)  all responsible and suitable wholesalers. 
D)  only those wholesalers and retailers who give the product special attention. 
E)  only one wholesaler or retailer in each geographic area.

Question 11

Intermediaries are needed LEAST when the desired degree of market exposure is:

Accepted Answer

A)  intensive. 
B)  ideal. 
C)  selective. 
D)  exclusive. 
E)  none of these choices is correct. 
A)  intensive. 
B)  ideal. 
C)  selective. 
D)  exclusive. 
E)  none of these choices is correct.

Question 12

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is typically the lowest risk approach for moving into international markets?

Accepted Answer

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

Question 14

Strategy "Place" decisions would NOT include:

Accepted Answer

A)  geographic pricing policy. 
B)  type of channel of distribution. 
C)  type of intermediaries/collaborators. 
D)  type of physical distribution facilities. 
E)  degree of market exposure desired. 
A)  geographic pricing policy. 
B)  type of channel of distribution. 
C)  type of intermediaries/collaborators. 
D)  type of physical distribution facilities. 
E)  degree of market exposure desired.

Question 15

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 16

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Accepted Answer

A)  Corporate 
B)  Traditional 
C)  Administered 
D)  Contractual 
E)  Technical 
A)  Corporate 
B)  Traditional 
C)  Administered 
D)  Contractual 
E)  Technical

Question 17

A disadvantage of direct-to-customer channels is that they

Accepted Answer

A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of these is a disadvantage of direct-to-customer channels. 
A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of these is a disadvantage of direct-to-customer channels.

Question 18

Throughout the world, Sony sells its televisions through retailers. Which of the following is probably a reason for using this indirect distribution strategy?

Accepted Answer

A)  Sony's customers prefer to buy direct from Sony. 
B)  Sony's customers do not know which intermediaries sell its televisions. 
C)  Sony has limited financial resources. 
D)  Sony could more effectively serve customers by selling to them through its website. 
E)  Sony believes that some intermediaries can serve customer needs better than Sony and at lower cost. 
A)  Sony's customers prefer to buy direct from Sony. 
B)  Sony's customers do not know which intermediaries sell its televisions. 
C)  Sony has limited financial resources. 
D)  Sony could more effectively serve customers by selling to them through its website. 
E)  Sony believes that some intermediaries can serve customer needs better than Sony and at lower cost.

Question 19

Intermediaries are needed MOST when the desired degree of market exposure is:

Accepted Answer

A)  selective. 
B)  intensive. 
C)  exclusive. 
D)  administered. 
E)  none of these is a good answer. 
A)  selective. 
B)  intensive. 
C)  exclusive. 
D)  administered. 
E)  none of these is a good answer.

Question 20

"Discrepancies of assortment" means:

Accepted Answer

A)  there are more producers than consumers. 
B)  consumers want more output than producers make. 
C)  the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users. 
D)  there are more consumers than producers. 
E)  the difference between the quantity of products the typical producer makes and the quantity wanted by individual consumers. 
A)  there are more producers than consumers. 
B)  consumers want more output than producers make. 
C)  the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users. 
D)  there are more consumers than producers. 
E)  the difference between the quantity of products the typical producer makes and the quantity wanted by individual consumers.

Intermediaries in indirect channels of distribution:

Channels of distribution:

A large food retailer acquiring a cheese factory is an example of:

In a licensing agreement, the licensee

"Discrepancies of quantity" means:

Which of the following statements about direct-to-customer channels is False?

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Which of the following is NOT a true statement about traditional channel systems?

The lowest cost and lowest risk way to enter a foreign market is through

"Selective distribution" means selling through:

Intermediaries are needed LEAST when the desired degree of market exposure is:

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Which of the following is typically the lowest risk approach for moving into international markets?

Strategy "Place" decisions would NOT include:

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

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

A disadvantage of direct-to-customer channels is that they

Throughout the world, Sony sells its televisions through retailers. Which of the following is probably a reason for using this indirect distribution strategy?

Intermediaries are needed MOST when the desired degree of market exposure is:

"Discrepancies of assortment" means:

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

Intermediaries in indirect channels of distribution:

Channels of distribution:

A large food retailer acquiring a cheese factory is an example of:

In a licensing agreement, the licensee

"Discrepancies of quantity" means:

Which of the following statements about direct-to-customer channels is False?

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Which of the following is NOT a true statement about traditional channel systems?

The lowest cost and lowest risk way to enter a foreign market is through

"Selective distribution" means selling through:

Intermediaries are needed LEAST when the desired degree of market exposure is:

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Which of the following is typically the lowest risk approach for moving into international markets?

Strategy "Place" decisions would NOT include:

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

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

A disadvantage of direct-to-customer channels is that they

Throughout the world, Sony sells its televisions through retailers. Which of the following is probably a reason for using this indirect distribution strategy?

Intermediaries are needed MOST when the desired degree of market exposure is:

"Discrepancies of assortment" means:

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