Question 1

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Accepted Answer

A) True 
 B)False

Question 2

A direct-to-customer channel ________.

Accepted Answer

A)  includes a retailer but not a wholesaler 
B)  usually helps the producer to be more aware of changes in final customer attitudes 
C)  eliminates some of the marketing functions 
D)  is typical to reach final consumer markets 
E)  is most suitable when a large number of transactions are required in the channel or when orders are smaller 
A)  includes a retailer but not a wholesaler 
B)  usually helps the producer to be more aware of changes in final customer attitudes 
C)  eliminates some of the marketing functions 
D)  is typical to reach final consumer markets 
E)  is most suitable when a large number of transactions are required in the channel or when orders are smaller

Question 3

If a Universal computer monitor breaks while it is still under warranty,someone needs to get it to the repair center.In this case,Universal will need ________.

Accepted Answer

A)  reverse channels 
B)  multichannels 
C)  intensive distribution 
D)  exclusive distribution 
E)  selective distribution 
A)  reverse channels 
B)  multichannels 
C)  intensive distribution 
D)  exclusive distribution 
E)  selective distribution

Question 4

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.
If American Tennis Ball adds more wholesalers and more retail outlets,this is likely to

Accepted Answer

A)  create horizontal channel conflict. 
B)  lead to vertical channel conflict. 
C)  require that the largest wholesaler take over the channel captain role. 
D)  increase trust and cooperation in the channel. 
E)  prompt both vertical and horizontal channel conflict. 
A)  create horizontal channel conflict. 
B)  lead to vertical channel conflict. 
C)  require that the largest wholesaler take over the channel captain role. 
D)  increase trust and cooperation in the channel. 
E)  prompt both vertical and horizontal channel conflict.

Question 5

Because of long-run effects,decisions about one of the four Ps are often harder to change than the others.This P is:

Accepted Answer

A)  Product. 
B)  Place. 
C)  Promotion. 
D)  Price. 
A)  Product. 
B)  Place. 
C)  Promotion. 
D)  Price.

Question 6

When selecting the degree of market exposure for a firm's products,it's important to remember that:

Accepted Answer

A)  vertical arrangements between producers and intermediaries which limit sales by customer or territory are definitely illegal. 
B)  the Federal Trade Commission prohibits exclusive distribution. 
C)  vertical arrangements between producers and intermediaries which limit sales by customer or territory may be legal according to a recent Supreme Court ruling. 
D)  horizontal arrangements among competing producers or intermediaries which limit sales by customer or territory are generally considered legal. 
E)  None of these alternatives is correct. 
A)  vertical arrangements between producers and intermediaries which limit sales by customer or territory are definitely illegal. 
B)  the Federal Trade Commission prohibits exclusive distribution. 
C)  vertical arrangements between producers and intermediaries which limit sales by customer or territory may be legal according to a recent Supreme Court ruling. 
D)  horizontal arrangements among competing producers or intermediaries which limit sales by customer or territory are generally considered legal. 
E)  None of these alternatives is correct.

Question 7

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 8

Which of the following is NOT a likely advantage of vertical integration?

Accepted Answer

A)  Lower capital requirements. 
B)  Lower executive overhead. 
C)  Better control of distribution. 
D)  Better quality control. 
E)  Greater buying power. 
A)  Lower capital requirements. 
B)  Lower executive overhead. 
C)  Better control of distribution. 
D)  Better quality control. 
E)  Greater buying power.

Question 9

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 10

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 11

Marketers need to foster cooperation with various members of a channel system to prevent ________.

Accepted Answer

A)  channel competition 
B)  channel confusion 
C)  channel conflict 
D)  channel changing 
E)  channel surfing 
A)  channel competition 
B)  channel confusion 
C)  channel conflict 
D)  channel changing 
E)  channel surfing

Question 12

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This "regrouping activity" is called ________.

Accepted Answer

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

Question 13

Some channel conflict may

Accepted Answer

A)  be inevitable when channel members have different objectives. 
B)  be useful if that is what it takes for customers at the end of the channel to receive better value. 
C)  be avoided when a producer does not sell identical products through different (competing) channels. 
D)  be reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities. 
E)  All of these alternatives are correct. 
A)  be inevitable when channel members have different objectives. 
B)  be useful if that is what it takes for customers at the end of the channel to receive better value. 
C)  be avoided when a producer does not sell identical products through different (competing) channels. 
D)  be reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities. 
E)  All of these alternatives are correct.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is most likely selling the rights to use its:

Accepted Answer

A)  production facilities. 
B)  brand name. 
C)  channels of distribution. 
D)  sales force. 
E)  Any of these are equally likely. 
A)  production facilities. 
B)  brand name. 
C)  channels of distribution. 
D)  sales force. 
E)  Any of these are equally likely.

Question 16

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time.But a bookstore orders only a few copies of each book since its customers want to select from a wide variety.This example shows ________.

Accepted Answer

A)  why discrepancies of quantity occur 
B)  why both discrepancies of quantity and assortment occur 
C)  neither discrepancies of assortment or quantity 
D)  why discrepancies of assortment occur 
E)  multichannel distribution 
A)  why discrepancies of quantity occur 
B)  why both discrepancies of quantity and assortment occur 
C)  neither discrepancies of assortment or quantity 
D)  why discrepancies of assortment occur 
E)  multichannel distribution

Question 17

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Accepted Answer

A) True 
 B)False

Question 18

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

Accepted Answer

A) True 
 B)False

Question 19

The main reason that vertical marketing systems are becoming more common is ________.

Accepted Answer

A)  firms realize that working independently has advantages for channel members 
B)  firms increasingly understand that competition among channel members is profitable 
C)  it's easy for multiple firms to coordinate a single marketing mix for a common target market 
D)  firms recognize that coordination among channel members can increase sales for each channel member 
E)  only vertical marketing systems perform activities that adjust the quantities or assortments of products handled at each level in a channel of distribution 
A)  firms realize that working independently has advantages for channel members 
B)  firms increasingly understand that competition among channel members is profitable 
C)  it's easy for multiple firms to coordinate a single marketing mix for a common target market 
D)  firms recognize that coordination among channel members can increase sales for each channel member 
E)  only vertical marketing systems perform activities that adjust the quantities or assortments of products handled at each level in a channel of distribution

Question 20

A firm acquiring another firm at a different level of activity within a channel of distribution is called ________.

Accepted Answer

A)  vertical integration 
B)  a tying contract 
C)  dual distribution 
D)  horizontal integration 
E)  a regrouping activity 
A)  vertical integration 
B)  a tying contract 
C)  dual distribution 
D)  horizontal integration 
E)  a regrouping activity

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

A direct-to-customer channel ________.

If a Universal computer monitor breaks while it is still under warranty,someone needs to get it to the repair center.In this case,Universal will need ________.

Because of long-run effects,decisions about one of the four Ps are often harder to change than the others.This P is:

When selecting the degree of market exposure for a firm's products,it's important to remember that:

Strategy "Place" decisions would NOT include:

Which of the following is NOT a likely advantage of vertical integration?

Producers often have to use "multichannel distribution":

In a licensing agreement,the licensee

Marketers need to foster cooperation with various members of a channel system to prevent ________.

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This "regrouping activity" is called ________.

Some channel conflict may

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

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is most likely selling the rights to use its:

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time.But a bookstore orders only a few copies of each book since its customers want to select from a wide variety.This example shows ________.

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

The main reason that vertical marketing systems are becoming more common is ________.

A firm acquiring another firm at a different level of activity within a channel of distribution is called ________.

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

Exam 12: Place and Development of Channel Systems

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

A direct-to-customer channel ________.

If a Universal computer monitor breaks while it is still under warranty,someone needs to get it to the repair center.In this case,Universal will need ________.

Because of long-run effects,decisions about one of the four Ps are often harder to change than the others.This P is:

When selecting the degree of market exposure for a firm's products,it's important to remember that:

Strategy "Place" decisions would NOT include:

Which of the following is NOT a likely advantage of vertical integration?

Producers often have to use "multichannel distribution":

In a licensing agreement,the licensee

Marketers need to foster cooperation with various members of a channel system to prevent ________.

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This "regrouping activity" is called ________.

Some channel conflict may

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

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is most likely selling the rights to use its:

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time.But a bookstore orders only a few copies of each book since its customers want to select from a wide variety.This example shows ________.

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

The main reason that vertical marketing systems are becoming more common is ________.

A firm acquiring another firm at a different level of activity within a channel of distribution is called ________.

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