Question 1

To reduce conflicts in channels, a firm should:

Accepted Answer

A)  Offer different products through each channel. 
B)  Provide some compensation to members of the older channel. 
C)  Treat channel partners fairly even when one partner is more powerful. 
D)  Focus on segments not currently served by existing channels. 
E)  All of these alternatives are correct. 
A)  Offer different products through each channel. 
B)  Provide some compensation to members of the older channel. 
C)  Treat channel partners fairly even when one partner is more powerful. 
D)  Focus on segments not currently served by existing channels. 
E)  All of these alternatives are correct.

Question 2

Exporting

Accepted Answer

A)  is selling some of what the firm produces to foreign markets. 
B)  can be a way to get rid of surplus output. 
C)  can come from a real effort to look for new opportunities. 
D)  all of these alternatives are correct. 
A)  is selling some of what the firm produces to foreign markets. 
B)  can be a way to get rid of surplus output. 
C)  can come from a real effort to look for new opportunities. 
D)  all of these alternatives are correct.

Question 3

A channel system in which the various members agree by contract to cooperate with each other is called a(an) ______________ system.

Accepted Answer

A)  multichannel distribution 
B)  contractual channel 
C)  traditional channel 
D)  administered channel 
E)  vertically integrated channel 
A)  multichannel distribution 
B)  contractual channel 
C)  traditional channel 
D)  administered channel 
E)  vertically integrated channel

Question 4

Place is concerned with the selection and use of marketing specialists-intermediaries and collaborators-and making goods and services available in the right quantities and locations when customers want them.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the easiest way for a firm to enter foreign markets?

Accepted Answer

A)  joint ventures 
B)  licensing 
C)  multinational bargaining 
D)  direct investment 
E)  management contracting 
A)  joint ventures 
B)  licensing 
C)  multinational bargaining 
D)  direct investment 
E)  management contracting

Question 6

"Discrepancies of quantity" occur because

Accepted Answer

A)  producers seek economies of scale. 
B)  most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. 
C)  adding intermediaries in a channel of distribution increases the cost of getting products to consumers. 
D)  consumers want the convenience of buying many different types of products at one time. 
E)  all of these reasons are correct. 
A)  producers seek economies of scale. 
B)  most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. 
C)  adding intermediaries in a channel of distribution increases the cost of getting products to consumers. 
D)  consumers want the convenience of buying many different types of products at one time. 
E)  all of these reasons are correct.

Question 7

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.
A wholesaler for American Tennis Ball is likely to perform which of the following regrouping activities:

Accepted Answer

A)  Accumulating 
B)  Bulk-breaking 
C)  Assorting 
D)  All of these alternatives are correct. 
A)  Accumulating 
B)  Bulk-breaking 
C)  Assorting 
D)  All of these alternatives are correct.

Question 8

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

Accepted Answer

A) True 
 B)False

Question 9

A manufacturer that uses several competing channels to reach the same target market is using "multichannel distribution."

Accepted Answer

A) True 
 B)False

Question 10

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

Accepted Answer

A) True 
 B)False

Question 11

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

Accepted Answer

A) True 
 B)False

Question 12

Any contractual channel system-by definition-is also an administered channel system.

Accepted Answer

A) True 
 B)False

Question 13

Exclusive distribution is selling through only one intermediary in each geographic area.

Accepted Answer

A) True 
 B)False

Question 14

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.
National Tennis Ball's channel arrangement:

Accepted Answer

A)  is called horizontal distribution. 
B)  is an example of intensive distribution. 
C)  illustrates a traditional channel system. 
D)  relies on exclusive distribution. 
E)  is likely to be characterized by a high level of conflict between channel members. 
A)  is called horizontal distribution. 
B)  is an example of intensive distribution. 
C)  illustrates a traditional channel system. 
D)  relies on exclusive distribution. 
E)  is likely to be characterized by a high level of conflict between channel members.

Question 15

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Accepted Answer

A) True 
 B)False

Question 16

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of:

Accepted Answer

A)  Vertical integration 
B)  Sorting 
C)  Bulk-breaking 
D)  Assorting 
E)  Licensing 
A)  Vertical integration 
B)  Sorting 
C)  Bulk-breaking 
D)  Assorting 
E)  Licensing

Question 17

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

Accepted Answer

A) True 
 B)False

Question 18

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Accepted Answer

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

Question 19

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 these companies appears to operate as a channel captain?

Accepted Answer

A)  WTB 
B)  ATB 
C)  NTB 
D)  All of the companies appear to be channel captains 
E)  None of the companies is a channel captain 
A)  WTB 
B)  ATB 
C)  NTB 
D)  All of the companies appear to be channel captains 
E)  None of the companies is a channel captain

Question 20

Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

Accepted Answer

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

To reduce conflicts in channels, a firm should:

Exporting

A channel system in which the various members agree by contract to cooperate with each other is called a(an) ______________ system.

Place is concerned with the selection and use of marketing specialists-intermediaries and collaborators-and making goods and services available in the right quantities and locations when customers want them.

Which of the following is the easiest way for a firm to enter foreign markets?

"Discrepancies of quantity" occur because

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

A manufacturer that uses several competing channels to reach the same target market is using "multichannel distribution."

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

Any contractual channel system-by definition-is also an administered channel system.

Exclusive distribution is selling through only one intermediary in each geographic area.

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of:

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

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

To reduce conflicts in channels, a firm should:

Exporting

A channel system in which the various members agree by contract to cooperate with each other is called a(an) ______________ system.

Place is concerned with the selection and use of marketing specialists-intermediaries and collaborators-and making goods and services available in the right quantities and locations when customers want them.

Which of the following is the easiest way for a firm to enter foreign markets?

"Discrepancies of quantity" occur because

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

A manufacturer that uses several competing channels to reach the same target market is using "multichannel distribution."

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

Any contractual channel system-by definition-is also an administered channel system.

Exclusive distribution is selling through only one intermediary in each geographic area.

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of:

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

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