Question 1

Producers often have to use "multichannel distribution":

Accepted Answer

A)  because they want to sell both direct with a website and indirectly through intermediaries. 
B)  because big retail chains want to deal directly with producers. 
C)  because competitors use a variety of channels. 
D)  because present channel members are doing a poor job. 
E)  All of these are valid reasons for producers to use multichannel distribution. 
A)  because they want to sell both direct with a website and indirectly through intermediaries. 
B)  because big retail chains want to deal directly with producers. 
C)  because competitors use a variety of channels. 
D)  because present channel members are doing a poor job. 
E)  All of these are valid reasons for producers to use multichannel distribution.

Question 2

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

Accepted Answer

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

Question 3

"Exclusive distribution" means selling through:

Accepted Answer

A)  the most prestigious retail outlets. 
B)  only one wholesaler or retailer in a particular geographic area. 
C)  only responsible and suitable retailers or wholesalers. 
D)  retailers that handle specialty products. 
E)  only those wholesalers or retailers who will give the product special attention. 
A)  the most prestigious retail outlets. 
B)  only one wholesaler or retailer in a particular geographic area. 
C)  only responsible and suitable retailers or wholesalers. 
D)  retailers that handle specialty products. 
E)  only those wholesalers or retailers who will give the product special attention.

Question 4

A producer who wants to reach certain customers may have no choice about which wholesaler to use.

Accepted Answer

A) True 
 B)False

Question 5

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Accepted Answer

A)  exclusive distribution. 
B)  selective distribution. 
C)  intensive distribution. 
D)  a vertically integrated distribution system. 
E)  any of these, since every channel member must support a product with promotion. 
A)  exclusive distribution. 
B)  selective distribution. 
C)  intensive distribution. 
D)  a vertically integrated distribution system. 
E)  any of these, since every channel member must support a product with promotion.

Question 6

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

Accepted Answer

A)  Licensing 
B)  Management contracting 
C)  Joint venturing 
D)  Exporting 
E)  Direct investment 
A)  Licensing 
B)  Management contracting 
C)  Joint venturing 
D)  Exporting 
E)  Direct investment

Question 7

Discrepancy of quantity is

Accepted Answer

A)  the difference between the lines a typical producer makes and the assortment final consumers or users want. 
B)  adjusting the quantities of products handled at each level in a channel of distribution. 
C)  collecting products from many small producers. 
D)  the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want. 
E)  usually seen with producers who specialize by product. 
A)  the difference between the lines a typical producer makes and the assortment final consumers or users want. 
B)  adjusting the quantities of products handled at each level in a channel of distribution. 
C)  collecting products from many small producers. 
D)  the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want. 
E)  usually seen with producers who specialize by product.

Question 8

Exclusive distribution

Accepted Answer

A)  should generally be used only if it is not possible to generate intermediary interest in intensive distribution. 
B)  is legal as long as it does not involve vertical channel arrangements. 
C)  arrangements between a producer and intermediary are illegal for most types of products, and thus they are not very common in the U.S. 
D)  usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product. 
E)  None of these alternatives are correct. 
A)  should generally be used only if it is not possible to generate intermediary interest in intensive distribution. 
B)  is legal as long as it does not involve vertical channel arrangements. 
C)  arrangements between a producer and intermediary are illegal for most types of products, and thus they are not very common in the U.S. 
D)  usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product. 
E)  None of these alternatives are correct.

Question 9

In _____ channel systems, the channel members agree by contract to cooperate with each other.

Accepted Answer

A)  contractual 
B)  traditional 
C)  selective 
D)  corporate 
E)  administered 
A)  contractual 
B)  traditional 
C)  selective 
D)  corporate 
E)  administered

Question 10

Traditional channel systems:

Accepted Answer

A)  Are characterized by strong ties between channel members. 
B)  Exhibit little cooperation between channel members. 
C)  Have channel members that look out for each other's best interest. 
D)  Have members that go to great lengths to cooperate with each other. 
E)  Usually feature a strong product-market commitment that is shared by all of the members of the channel. 
A)  Are characterized by strong ties between channel members. 
B)  Exhibit little cooperation between channel members. 
C)  Have channel members that look out for each other's best interest. 
D)  Have members that go to great lengths to cooperate with each other. 
E)  Usually feature a strong product-market commitment that is shared by all of the members of the channel.

Question 11

Direct marketing is

Accepted Answer

A)  personal sales contact between a representative of the company and an individual consumer. 
B)  primarily concerned with the degree of market exposure. 
C)  direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. 
D)  an effort to sell through only one intermediary. 
E)  a strategy that works best when a producer has little working capital. 
A)  personal sales contact between a representative of the company and an individual consumer. 
B)  primarily concerned with the degree of market exposure. 
C)  direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. 
D)  an effort to sell through only one intermediary. 
E)  a strategy that works best when a producer has little working capital.

Question 12

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

Accepted Answer

A)  traditional 
B)  administered 
C)  contractual 
D)  corporate 
E)  nonprofit 
A)  traditional 
B)  administered 
C)  contractual 
D)  corporate 
E)  nonprofit

Question 13

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Accepted Answer

A)  Monopoly. 
B)  Vertical integration. 
C)  Intertype competition. 
D)  A contractual channel system. 
E)  An administered channel system. 
A)  Monopoly. 
B)  Vertical integration. 
C)  Intertype competition. 
D)  A contractual channel system. 
E)  An administered channel system.

Question 14

Which of the following is NOT one of the degrees of market exposure?

Accepted Answer

A)  Selective distribution 
B)  Multichannel distribution 
C)  Intensive distribution 
D)  Exclusive distribution 
E)  None of these, i.e. all are degrees of market exposure 
A)  Selective distribution 
B)  Multichannel distribution 
C)  Intensive distribution 
D)  Exclusive distribution 
E)  None of these, i.e. all are degrees of market exposure

Question 15

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

Accepted Answer

A)  Discrepancy of assortment. 
B)  Discrepancy of quantity. 
C)  Regrouping activity. 
D)  Discrepancy adjustment. 
E)  Marketing discrepancy. 
A)  Discrepancy of assortment. 
B)  Discrepancy of quantity. 
C)  Regrouping activity. 
D)  Discrepancy adjustment. 
E)  Marketing discrepancy.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Reverse channels may be used to retrieve products from:

Accepted Answer

A)  business customers 
B)  intermediaries 
C)  business customers and intermediaries 
D)  final consumers 
E)  all of these 
A)  business customers 
B)  intermediaries 
C)  business customers and intermediaries 
D)  final consumers 
E)  all of these

Question 18

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Accepted Answer

A) True 
 B)False

Question 19

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

Accepted Answer

A) True 
 B)False

Question 20

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 of the following appears to best describe ATB's channel arrangements?

Accepted Answer

A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Global distribution 
E)  Direct distribution 
A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Global distribution 
E)  Direct distribution

Producers often have to use "multichannel distribution":

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

"Exclusive distribution" means selling through:

A producer who wants to reach certain customers may have no choice about which wholesaler to use.

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

Discrepancy of quantity is

Exclusive distribution

In _____ channel systems, the channel members agree by contract to cooperate with each other.

Traditional channel systems:

Direct marketing is

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Which of the following is NOT one of the degrees of market exposure?

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

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

Reverse channels may be used to retrieve products from:

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

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

Producers often have to use "multichannel distribution":

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

"Exclusive distribution" means selling through:

A producer who wants to reach certain customers may have no choice about which wholesaler to use.

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

Discrepancy of quantity is

Exclusive distribution

In _____ channel systems, the channel members agree by contract to cooperate with each other.

Traditional channel systems:

Direct marketing is

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Which of the following is NOT one of the degrees of market exposure?

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

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

Reverse channels may be used to retrieve products from:

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

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