Question 1

A channel of distribution:

Accepted Answer

A)  is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B)  is only needed when products must be stored. 
C)  must include one or more intermediaries. 
D)  is only needed when products are sold indirectly. 
E)  None of these alternatives is a good answer. 
A)  is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B)  is only needed when products must be stored. 
C)  must include one or more intermediaries. 
D)  is only needed when products are sold indirectly. 
E)  None of these alternatives is a good answer. A

Question 2

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 D

Question 3

The 80/20 rule-that 80 percent of a company's sales often come from just 20 percent of its customers-is a good reason for marketers to use:

Accepted Answer

A)  selective distribution 
B)  intensive distribution 
C)  exclusive distribution 
D)  international distribution 
E)  multichannel distribution 
A)  selective distribution 
B)  intensive distribution 
C)  exclusive distribution 
D)  international distribution 
E)  multichannel distribution A

Question 4

With respect to consumer products,which of the following is the most common system for distributing consumer products in the U.S.?

Accepted Answer

A)  Direct channel systems 
B)  Vertical marketing systems 
C)  Traditional channel systems 
D)  Horizontal marketing systems 
E)  None of these is a good answer 
A)  Direct channel systems 
B)  Vertical marketing systems 
C)  Traditional channel systems 
D)  Horizontal marketing systems 
E)  None of these is a good answer

Question 5

A good "channel captain" knows that:

Accepted Answer

A)  direct-to-customer channels usually cost less and perform more efficiently than indirect channels. 
B)  marketing functions can be shifted and shared within a channel-but they cannot be completely eliminated. 
C)  a traditional channel system works best. 
D)  some marketing functions can usually be completely eliminated by using short channels instead of long channels. 
E)  None of these alternatives is correct. 
A)  direct-to-customer channels usually cost less and perform more efficiently than indirect channels. 
B)  marketing functions can be shifted and shared within a channel-but they cannot be completely eliminated. 
C)  a traditional channel system works best. 
D)  some marketing functions can usually be completely eliminated by using short channels instead of long channels. 
E)  None of these alternatives is correct.

Question 6

Midwest Tools,Inc.of Indianapolis,Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe.This type of international involvement is called ________.

Accepted Answer

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

Question 7

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service,this producer should seek:

Accepted Answer

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

Question 8

"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.

Question 9

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 10

Most traditional channel systems don't have a channel captain.

Accepted Answer

A) True 
 B)False

Question 11

In "traditional channel systems," the channel members:

Accepted Answer

A)  consider traditional values-like cooperation and respect-as central to their relationship. 
B)  have franchise contracts. 
C)  usually have a common product-market commitment. 
D)  make little or no effort to cooperate with each other. 
E)  are integrated. 
A)  consider traditional values-like cooperation and respect-as central to their relationship. 
B)  have franchise contracts. 
C)  usually have a common product-market commitment. 
D)  make little or no effort to cooperate with each other. 
E)  are integrated.

Question 12

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 13

Because wholesalers and retailers are closer to the final user,they are in an ideal position to assume the channel captain role.

Accepted Answer

A) True 
 B)False

Question 14

In a licensing agreement,the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.

Accepted Answer

A) True 
 B)False

Question 15

A computer manufacturer runs training programs for its "cooperating" retailers' salespeople,as well as providing newspaper advertising layouts,point-of-purchase materials,and sales manuals.This is an example of ________.

Accepted Answer

A)  an administered channel system 
B)  a contractual channel system 
C)  a traditional channel system 
D)  a vertically integrated corporate channel system 
E)  a franchising system 
A)  an administered channel system 
B)  a contractual channel system 
C)  a traditional channel system 
D)  a vertically integrated corporate channel system 
E)  a franchising system

Question 16

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

Accepted Answer

A)  vertical marketing system 
B)  horizontal marketing system 
C)  parallel marketing system 
D)  diagonal marketing system 
E)  linear marketing system 
A)  vertical marketing system 
B)  horizontal marketing system 
C)  parallel marketing system 
D)  diagonal marketing system 
E)  linear marketing system

Question 17

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 18

Multichannel distribution occurs when a producer uses several competing channels to reach the same target market perhaps using several intermediaries in addition to selling directly.

Accepted Answer

A) True 
 B)False

Question 19

Firms that use direct marketing promotion may or may not use direct distribution.

Accepted Answer

A) True 
 B)False

Question 20

Why do producer prefer direct distribution?

Accepted Answer

A)  because it has more business transactions 
B)  because they can handle orders that are smaller in size 
C)  because they want to maintain control of the marketing mix 
D)  because customers are usually widely dispersed across geographic areas 
E)  because business products always use direct distribution 
A)  because it has more business transactions 
B)  because they can handle orders that are smaller in size 
C)  because they want to maintain control of the marketing mix 
D)  because customers are usually widely dispersed across geographic areas 
E)  because business products always use direct distribution

Exam 12: Place and Development of Channel Systems

A channel of distribution:

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

The 80/20 rule-that 80 percent of a company's sales often come from just 20 percent of its customers-is a good reason for marketers to use:

With respect to consumer products,which of the following is the most common system for distributing consumer products in the U.S.?

A good "channel captain" knows that:

Midwest Tools,Inc.of Indianapolis,Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe.This type of international involvement is called ________.

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service,this producer should seek:

"Discrepancies of assortment" means:

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

Most traditional channel systems don't have a channel captain.

In "traditional channel systems," the channel members:

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

Because wholesalers and retailers are closer to the final user,they are in an ideal position to assume the channel captain role.

In a licensing agreement,the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.

A computer manufacturer runs training programs for its "cooperating" retailers' salespeople,as well as providing newspaper advertising layouts,point-of-purchase materials,and sales manuals.This is an example of ________.

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

Exclusive distribution

Multichannel distribution occurs when a producer uses several competing channels to reach the same target market perhaps using several intermediaries in addition to selling directly.

Firms that use direct marketing promotion may or may not use direct distribution.

Why do producer prefer direct distribution?

Marketings Value to Consumers, Firms, and Society

Implementing and Controlling Marketing Plans: Evolution and Revolution

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

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 and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters