Question 1

In _____ channel systems,the channel members agree by contract to cooperate with each other.

Accepted Answer

A)  contractual 
B)  traditional 
C)  selective 
D)  corporate 
E)  administered 
A)  contractual 
B)  traditional 
C)  selective 
D)  corporate 
E)  administered

Question 2

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called ________.

Accepted Answer

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

Question 3

Channel conflict often results when a manufacturer opens a new distribution channel,especially if it directly competes with its existing intermediaries.

Accepted Answer

A) True 
 B)False

Question 4

The terms "direct marketing" and "direct distribution" mean the same thing.

Accepted Answer

A) True 
 B)False

Question 5

A producer using several competing channels to distribute its products to its target market is using ________ distribution.

Accepted Answer

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

Question 6

Which of the following statements about Place is true?

Accepted Answer

A)  Most consumer products and most business products are sold to intermediaries who then sell them to final customers. 
B)  Place decisions are usually harder to change than other marketing mix decisions. 
C)  There is always one Place arrangement that is "best" for a product. 
D)  A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. 
E)  None of these statements about Place is true. 
A)  Most consumer products and most business products are sold to intermediaries who then sell them to final customers. 
B)  Place decisions are usually harder to change than other marketing mix decisions. 
C)  There is always one Place arrangement that is "best" for a product. 
D)  A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. 
E)  None of these statements about Place is true.

Question 7

________ means trying to increase sales of a firm's present products in its present markets

Accepted Answer

A) True 
 B)False

Question 8

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Accepted Answer

A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal 
A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal

Question 9

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

Accepted Answer

A) True 
 B)False

Question 10

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Accepted Answer

A)  exclusive distribution. 
B)  selective distribution. 
C)  intensive distribution. 
D)  a vertically integrated distribution system. 
E)  any of these, since every channel member must support a product with promotion. 
A)  exclusive distribution. 
B)  selective distribution. 
C)  intensive distribution. 
D)  a vertically integrated distribution system. 
E)  any of these, since every channel member must support a product with promotion.

Question 11

Which of the following statements about ideal market exposure is true?

Accepted Answer

A)  As a firm goes from exclusive to intensive distribution, it loses progressively more control over price and service offered by retailers. 
B)  A producer usually should seek maximum market exposure. 
C)  Intensive distribution means trying to sell through all retail stores. 
D)  It is necessary to get almost 100 percent market exposure to justify national promotion. 
E)  All of these statements about ideal market exposure are true. 
A)  As a firm goes from exclusive to intensive distribution, it loses progressively more control over price and service offered by retailers. 
B)  A producer usually should seek maximum market exposure. 
C)  Intensive distribution means trying to sell through all retail stores. 
D)  It is necessary to get almost 100 percent market exposure to justify national promotion. 
E)  All of these statements about ideal market exposure are true.

Question 12

In a joint venture,a domestic firm enters into a partnership with a foreign firm.

Accepted Answer

A) True 
 B)False

Question 13

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.

Accepted Answer

A)  traditional channel 
B)  vertically integrated 
C)  direct-to-customer channel 
D)  franchising 
E)  administered channel 
A)  traditional channel 
B)  vertically integrated 
C)  direct-to-customer channel 
D)  franchising 
E)  administered channel

Question 14

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 15

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

Accepted Answer

A)  intensive. 
B)  ideal. 
C)  selective. 
D)  exclusive. 
E)  none of these choices is correct. 
A)  intensive. 
B)  ideal. 
C)  selective. 
D)  exclusive. 
E)  none of these choices is correct.

Question 16

Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and citrus juices sold outside the United States.Sunkist gets both an initial fee and a royalty on the sale of goods bearing its brand name.Sunkist is engaged in:

Accepted Answer

A)  exporting. 
B)  management contracting. 
C)  licensing. 
D)  joint venturing. 
E)  None of these is a good answer. 
A)  exporting. 
B)  management contracting. 
C)  licensing. 
D)  joint venturing. 
E)  None of these is a good answer.

Question 17

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ________ systems.

Accepted Answer

A)  traditional channel 
B)  vertically integrated 
C)  direct-to-customer channel 
D)  franchising 
E)  administered channel 
A)  traditional channel 
B)  vertically integrated 
C)  direct-to-customer channel 
D)  franchising 
E)  administered channel

Question 18

With the Internet,even very small specialized firms can draw customers from all over the world.

Accepted Answer

A) True 
 B)False

Question 19

To minimize its own risks,the Boomtown Petroleum Corp.of Houston,Texas,operates a South American oil refinery that is owned by residents of that country.Boomtown is engaged in an activity known as:

Accepted Answer

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

Question 20

Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

Accepted Answer

A) True 
 B)False

Exam 12: Place and Development of Channel Systems

In _____ channel systems,the channel members agree by contract to cooperate with each other.

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called ________.

Channel conflict often results when a manufacturer opens a new distribution channel,especially if it directly competes with its existing intermediaries.

The terms "direct marketing" and "direct distribution" mean the same thing.

A producer using several competing channels to distribute its products to its target market is using ________ distribution.

Which of the following statements about Place is true?

________ means trying to increase sales of a firm's present products in its present markets

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Which of the following statements about ideal market exposure is true?

In a joint venture,a domestic firm enters into a partnership with a foreign firm.

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.

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:

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

Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and citrus juices sold outside the United States.Sunkist gets both an initial fee and a royalty on the sale of goods bearing its brand name.Sunkist is engaged in:

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ________ systems.

With the Internet,even very small specialized firms can draw customers from all over the world.

To minimize its own risks,the Boomtown Petroleum Corp.of Houston,Texas,operates a South American oil refinery that is owned by residents of that country.Boomtown is engaged in an activity known as:

Intensive distribution covers the broad area of market exposure between selective and exclusive 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