Exam 10: Place and Development of Channel Systems

In a _____ the whole channel focuses on the same target market at the end of the channel.

Bulk-breaking means separating products into grades and qualities as desired by different target markets.

Which of the following is true of a producer-led channel system?

In international markets, a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

A firm that has a lot of "management know-how," but expects production problems in a foreign market, might be wise to use management contracting.

Vertical marketing systems account for a majority of U.S. retail sales.

"Sorting" means separating products into grades and qualities desired by different target markets.

Selling direct-to-customer is more common with business products than consumer products.

Indirect channels are probably a better choice than direct channels when:

The desirability of a common "product-market commitment" is based on the idea that:

Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets. This creates a source of

The Internet is making it possible for firms to reach customers that were impossible to reach before.

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

In a joint venture, a domestic firm enters into a partnership with a foreign firm.

In an indirect channel of distribution, both vertical conflict and horizontal conflict may arise.

Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and citrus juices sold outside the United States. Sunkist gets both an initial fee and a royalty on the sale of goods bearing its brand name. Sunkist is engaged in:

A "channel captain"

The vertical marketing system in which control is maintained via informal cooperation among the channel members is a(n):

If Penn Hills Mfg. Corp. gives the Johnstown Distributing Co. the exclusive right to distribute Penn Hills' products in Ohio-with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio, this arrangement:

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.