Question 1

A convenience product would probably be sold using ________.

Accepted Answer

A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Extensive distribution 
E)  Sole-source distribution 
A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Extensive distribution 
E)  Sole-source distribution

Question 2

"Intensive distribution" means selling through ________.

Accepted Answer

A)  only one channel of distribution 
B)  all responsible and suitable retailers or wholesalers 
C)  only one intermediary in a particular geographic area 
D)  only those intermediaries who give the product special attention 
E)  all retail outlets 
A)  only one channel of distribution 
B)  all responsible and suitable retailers or wholesalers 
C)  only one intermediary in a particular geographic area 
D)  only those intermediaries who give the product special attention 
E)  all retail outlets

Question 3

"Ideal market exposure" means selling a product through all intermediaries willing to stock and sell it.

Accepted Answer

A) True 
 B)False

Question 4

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales,it would be using:

Accepted Answer

A)  licensing. 
B)  joint venturing. 
C)  management contracting. 
D)  exporting. 
E)  direct investment. 
A)  licensing. 
B)  joint venturing. 
C)  management contracting. 
D)  exporting. 
E)  direct investment.

Question 5

A joint venture is ________.

Accepted Answer

A)  a firm that provides only management skills, while others own the production and distribution facilities 
B)  a firm selling the right to use some process, trademark, or other right for a fee 
C)  a separate firm owned by a parent company 
D)  a domestic firm entering into a partnership with a foreign firm 
E)  a firm getting rid of surplus inventory 
A)  a firm that provides only management skills, while others own the production and distribution facilities 
B)  a firm selling the right to use some process, trademark, or other right for a fee 
C)  a separate firm owned by a parent company 
D)  a domestic firm entering into a partnership with a foreign firm 
E)  a firm getting rid of surplus inventory

Question 6

Since music,movies,books,and TV programs now exist in digital form,such products:

Accepted Answer

A)  have the same distribution methods as physical products. 
B)  have lower distribution costs. 
C)  do not require "intermediaries." 
D)  do not need distribution. 
E)  do not face discrepancies of quantity or assortment. 
A)  have the same distribution methods as physical products. 
B)  have lower distribution costs. 
C)  do not require "intermediaries." 
D)  do not need distribution. 
E)  do not face discrepancies of quantity or assortment.

Question 7

A channel system in which the various members informally agree to cooperate with each other is called a(n)________ system.

Accepted Answer

A)  contractual channel 
B)  dual distribution 
C)  traditional channel 
D)  administered channel 
E)  franchising 
A)  contractual channel 
B)  dual distribution 
C)  traditional channel 
D)  administered channel 
E)  franchising

Question 8

When planning channels of distribution,a marketing manager should know that

Accepted Answer

A)  vertically integrated systems are seldom used-because of the difficulty of maintaining control. 
B)  a contractual system offers both flexibility and stability for its members. 
C)  the disadvantage of a corporate channel system is reduced control over distribution activities. 
D)  the disadvantage of an administered system is that it is a very formal arrangement. 
E)  none of these alternatives is correct. 
A)  vertically integrated systems are seldom used-because of the difficulty of maintaining control. 
B)  a contractual system offers both flexibility and stability for its members. 
C)  the disadvantage of a corporate channel system is reduced control over distribution activities. 
D)  the disadvantage of an administered system is that it is a very formal arrangement. 
E)  none of these alternatives is correct.

Question 9

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide.This is an example of ____________ distribution.

Accepted Answer

A)  administered 
B)  intensive 
C)  horizontal 
D)  selective 
E)  exclusive 
A)  administered 
B)  intensive 
C)  horizontal 
D)  selective 
E)  exclusive

Question 10

Producers who consider handling the entire distribution job themselves may be especially inclined to do so because ________.

Accepted Answer

A)  many customers have established buying patterns that don't include buying direct from producers 
B)  many customers have a preference for shopping at their favorite locations and won't be likely to change 
C)  direct distribution usually requires a significant investment in facilities, people, and information technology 
D)  a channel partner (intermediary) is not available or will not cooperate 
E)  intermediaries often serve customer needs better than producers and at lower cost 
A)  many customers have established buying patterns that don't include buying direct from producers 
B)  many customers have a preference for shopping at their favorite locations and won't be likely to change 
C)  direct distribution usually requires a significant investment in facilities, people, and information technology 
D)  a channel partner (intermediary) is not available or will not cooperate 
E)  intermediaries often serve customer needs better than producers and at lower cost

Question 11

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

Accepted Answer

A)  each member of the channel should focus on a different target market. 
B)  the whole channel is competing with other channel systems. 
C)  the producer should always be the "channel captain." 
D)  a channel can eliminate the marketing functions. 
E)  All of these ideas are relevant. 
A)  each member of the channel should focus on a different target market. 
B)  the whole channel is competing with other channel systems. 
C)  the producer should always be the "channel captain." 
D)  a channel can eliminate the marketing functions. 
E)  All of these ideas are relevant.

Question 12

A common "product-market commitment" in a channel system helps to eliminate:

Accepted Answer

A)  the need for a channel captain. 
B)  unnecessary and costly duplication of marketing functions. 
C)  all production-oriented channel members. 
D)  competition among different channel systems. 
E)  the need for marketing managers in individual firms. 
A)  the need for a channel captain. 
B)  unnecessary and costly duplication of marketing functions. 
C)  all production-oriented channel members. 
D)  competition among different channel systems. 
E)  the need for marketing managers in individual firms.

Question 13

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Accepted Answer

A) True 
 B)False

Question 14

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 15

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

Accepted Answer

A) True 
 B)False

Question 16

A wholesaler might help a producer by reducing the producer's need for market research.

Accepted Answer

A) True 
 B)False

Question 17

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs),this would be an example of:

Accepted Answer

A)  a tying contract. 
B)  an administered channel system. 
C)  internal expansion. 
D)  vertical integration. 
E)  horizontal integration. 
A)  a tying contract. 
B)  an administered channel system. 
C)  internal expansion. 
D)  vertical integration. 
E)  horizontal integration.

Question 18

All of the following are regrouping activities EXCEPT

Accepted Answer

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

Question 19

Costco is a warehouse store that sells groceries,household items,and business products.Purchase quantities tend to be larger than in traditional stores that serve final consumers.For example,soft drinks are only sold in 24-can cases,not in 6-packs.Coffee is sold in 3-pound cans instead of one-pound foil packs.Which regrouping activity is Costco shifting to the consumer?

Accepted Answer

A)  Accumulating 
B)  Adjusting discrepancies 
C)  Assorting 
D)  Bulk-breaking 
E)  Sorting 
A)  Accumulating 
B)  Adjusting discrepancies 
C)  Assorting 
D)  Bulk-breaking 
E)  Sorting

Question 20

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

Accepted Answer

A) True 
 B)False

A convenience product would probably be sold using ________.

"Intensive distribution" means selling through ________.

"Ideal market exposure" means selling a product through all intermediaries willing to stock and sell it.

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales,it would be using:

A joint venture is ________.

Since music,movies,books,and TV programs now exist in digital form,such products:

A channel system in which the various members informally agree to cooperate with each other is called a(n)________ system.

When planning channels of distribution,a marketing manager should know that

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide.This is an example of ____________ distribution.

Producers who consider handling the entire distribution job themselves may be especially inclined to do so because ________.

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

A common "product-market commitment" in a channel system helps to eliminate:

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Direct marketing is ________.

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

A wholesaler might help a producer by reducing the producer's need for market research.

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs),this would be an example of:

All of the following are regrouping activities EXCEPT

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

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

A convenience product would probably be sold using ________.

"Intensive distribution" means selling through ________.

"Ideal market exposure" means selling a product through all intermediaries willing to stock and sell it.

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales,it would be using:

A joint venture is ________.

Since music,movies,books,and TV programs now exist in digital form,such products:

A channel system in which the various members informally agree to cooperate with each other is called a(n)________ system.

When planning channels of distribution,a marketing manager should know that

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide.This is an example of ____________ distribution.

Producers who consider handling the entire distribution job themselves may be especially inclined to do so because ________.

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

A common "product-market commitment" in a channel system helps to eliminate:

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Direct marketing is ________.

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

A wholesaler might help a producer by reducing the producer's need for market research.

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs),this would be an example of:

All of the following are regrouping activities EXCEPT

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

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