Question 1

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

Accepted Answer

A) True 
 B)False

Question 2

The CBS network offers consumers hundreds of hours of television viewing each month,but the typical consumer wants to watch only a few programs.What type of discrepancy does this create?

Accepted Answer

A)  Discrepancy of assortment 
B)  Discrepancy of quality 
C)  Discrepancy of image 
D)  Discrepancy of variety 
E)  Discrepancy of quantity 
A)  Discrepancy of assortment 
B)  Discrepancy of quality 
C)  Discrepancy of image 
D)  Discrepancy of variety 
E)  Discrepancy of quantity

Question 3

Intermediaries are needed MOST when the desired degree of market exposure is:

Accepted Answer

A)  selective. 
B)  intensive. 
C)  exclusive. 
D)  administered. 
E)  none of these is a good answer. 
A)  selective. 
B)  intensive. 
C)  exclusive. 
D)  administered. 
E)  none of these is a good answer.

Question 4

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Accepted Answer

A) True 
 B)False

Question 5

Channels used to retrieve products that customers no longer want are called collection channels.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of selective distribution?

Accepted Answer

A)  It is commonly needed for convenience products and business supplies used by all offices. 
B)  It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  It is selling through only one intermediary in a particular geographic area. 
D)  It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  It is selling through only those intermediaries who will give the product special attention. 
A)  It is commonly needed for convenience products and business supplies used by all offices. 
B)  It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  It is selling through only one intermediary in a particular geographic area. 
D)  It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  It is selling through only those intermediaries who will give the product special attention.

Question 7

Which of the following statements about Place is FALSE?

Accepted Answer

A)  Place variations are required when target markets have different needs. 
B)  Product classes suggest Place objectives. 
C)  Place decisions have relatively little impact on competition in a product-market. 
D)  Place decisions have longer-run implications than Price decisions. 
E)  Place decisions need to consider when customers want products. 
A)  Place variations are required when target markets have different needs. 
B)  Product classes suggest Place objectives. 
C)  Place decisions have relatively little impact on competition in a product-market. 
D)  Place decisions have longer-run implications than Price decisions. 
E)  Place decisions need to consider when customers want products.

Question 8

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Accepted Answer

A) True 
 B)False

Question 9

Every morning,Sycamore Dairy picks up milk that farmers have "milked" that morning.The dairy processes the milk and separates the cream from the milk.Some of the cream is then made into butter and packaged in various size containers.The milk and remaining cream are blended into various products,sealed in pint,quart,and half-gallon containers,and then delivered to supermarkets in the quantities and assortments ordered.The dairy is providing what regrouping activity?

Accepted Answer

A)  Assorting 
B)  Accumulating 
C)  Sorting 
D)  Bulk-breaking 
E)  All of these regrouping activities are being provided by Sycamore Dairy. 
A)  Assorting 
B)  Accumulating 
C)  Sorting 
D)  Bulk-breaking 
E)  All of these regrouping activities are being provided by Sycamore Dairy.

Question 10

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 11

The role of "channel captain":

Accepted Answer

A)  should be taken by producers because they have more power. 
B)  is to force other channel members to accept the channel captain's plan. 
C)  should be taken by retailers because they are closer to consumers. 
D)  may not be necessary if the channel members are satisfied with the "status-quo." 
E)  is to help a channel system compete more effectively with other channel systems. 
A)  should be taken by producers because they have more power. 
B)  is to force other channel members to accept the channel captain's plan. 
C)  should be taken by retailers because they are closer to consumers. 
D)  may not be necessary if the channel members are satisfied with the "status-quo." 
E)  is to help a channel system compete more effectively with other channel systems.

Question 12

________ conflict occurs between firms at different levels in the channel of distribution.

Accepted Answer

A)  Vertical 
B)  Diagonal 
C)  Horizontal 
D)  Parallel 
E)  Cyclical 
A)  Vertical 
B)  Diagonal 
C)  Horizontal 
D)  Parallel 
E)  Cyclical

Question 13

Strategy "Place" decisions would NOT include:

Accepted Answer

A)  type of physical distribution facilities. 
B)  type of channel of distribution. 
C)  degree of market exposure desired. 
D)  distribution customer service level. 
E)  how to train wholesalers' salespeople. 
A)  type of physical distribution facilities. 
B)  type of channel of distribution. 
C)  degree of market exposure desired. 
D)  distribution customer service level. 
E)  how to train wholesalers' salespeople.

Question 14

Which of the following is NOT an advantage of vertical integration?

Accepted Answer

A)  Lower executive overhead 
B)  Better control of distribution 
C)  Easier adjustment of discrepancies of quantity and assortment 
D)  Greater buying power 
E)  Stable sources of supplies 
A)  Lower executive overhead 
B)  Better control of distribution 
C)  Easier adjustment of discrepancies of quantity and assortment 
D)  Greater buying power 
E)  Stable sources of supplies

Question 15

Which of the following statements about direct channel systems is FALSE?

Accepted Answer

A)  There is no reliance on independent intermediaries whose objectives may be different from the producer's objectives. 
B)  Suitable intermediaries are always available even when they're needed at the last minute. 
C)  The producer can be more aware of changes in customer attitudes. 
D)  Direct channels are more typical with business products than with consumer products. 
E)  None of these statements about direct channel systems is FALSE. 
A)  There is no reliance on independent intermediaries whose objectives may be different from the producer's objectives. 
B)  Suitable intermediaries are always available even when they're needed at the last minute. 
C)  The producer can be more aware of changes in customer attitudes. 
D)  Direct channels are more typical with business products than with consumer products. 
E)  None of these statements about direct channel systems is FALSE.

Question 16

When Renault Motor Co.builds a new production facility in Venezuela and it is the sole owner of the facility,this is an example of a(n)________ investment approach.

Accepted Answer

A)  indirect 
B)  management contracting 
C)  joint venture 
D)  licensing 
E)  direct 
A)  indirect 
B)  management contracting 
C)  joint venture 
D)  licensing 
E)  direct

Question 17

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 18

Which of the following statements about channel systems is true?

Accepted Answer

A)  Traditional channel systems are more efficient because of their greater freedom. 
B)  Vertical integration works best when discrepancies of quantity are large. 
C)  Most corporate channel systems use multichannel distribution. 
D)  Some administered channel systems obtain the advantages of vertically integrated systems while still retaining flexibility. 
E)  All of these statements about channel systems are true. 
A)  Traditional channel systems are more efficient because of their greater freedom. 
B)  Vertical integration works best when discrepancies of quantity are large. 
C)  Most corporate channel systems use multichannel distribution. 
D)  Some administered channel systems obtain the advantages of vertically integrated systems while still retaining flexibility. 
E)  All of these statements about channel systems are true.

Question 19

Selective distribution:

Accepted Answer

A)  is likely to reduce high administrative expenses caused by a large proportion of small orders. 
B)  may be suitable for all categories of products. 
C)  is becoming more popular. 
D)  is a good idea if some of the available intermediaries are not financially solid. 
E)  All of these alternatives are correct. 
A)  is likely to reduce high administrative expenses caused by a large proportion of small orders. 
B)  may be suitable for all categories of products. 
C)  is becoming more popular. 
D)  is a good idea if some of the available intermediaries are not financially solid. 
E)  All of these alternatives are correct.

Question 20

Which of the following is not a common cause of conflict between producers and channel partners in a channel system?

Accepted Answer

A)  lack of communication. 
B)  different objectives. 
C)  independent operations. 
D)  lack of a channel captain. 
E)  different target customers. 
A)  lack of communication. 
B)  different objectives. 
C)  independent operations. 
D)  lack of a channel captain. 
E)  different target customers.

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

The CBS network offers consumers hundreds of hours of television viewing each month,but the typical consumer wants to watch only a few programs.What type of discrepancy does this create?

Intermediaries are needed MOST when the desired degree of market exposure is:

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Channels used to retrieve products that customers no longer want are called collection channels.

Which of the following is true of selective distribution?

Which of the following statements about Place is FALSE?

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

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:

The role of "channel captain":

________ conflict occurs between firms at different levels in the channel of distribution.

Strategy "Place" decisions would NOT include:

Which of the following is NOT an advantage of vertical integration?

Which of the following statements about direct channel systems is FALSE?

When Renault Motor Co.builds a new production facility in Venezuela and it is the sole owner of the facility,this is an example of a(n)________ investment approach.

To reduce conflicts in channels,a firm should:

Which of the following statements about channel systems is true?

Selective distribution:

Which of the following is not a common cause of conflict between producers and channel partners in a channel system?

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

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

The CBS network offers consumers hundreds of hours of television viewing each month,but the typical consumer wants to watch only a few programs.What type of discrepancy does this create?

Intermediaries are needed MOST when the desired degree of market exposure is:

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Channels used to retrieve products that customers no longer want are called collection channels.

Which of the following is true of selective distribution?

Which of the following statements about Place is FALSE?

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

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:

The role of "channel captain":

________ conflict occurs between firms at different levels in the channel of distribution.

Strategy "Place" decisions would NOT include:

Which of the following is NOT an advantage of vertical integration?

Which of the following statements about direct channel systems is FALSE?

When Renault Motor Co.builds a new production facility in Venezuela and it is the sole owner of the facility,this is an example of a(n)________ investment approach.

To reduce conflicts in channels,a firm should:

Which of the following statements about channel systems is true?

Selective distribution:

Which of the following is not a common cause of conflict between producers and channel partners in a channel system?

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