Question 1

Selling products manufactured in the United States to foreign customers-often without any product changes-is called ________.

Accepted Answer

A)  joint ventures 
B)  licensing 
C)  importing 
D)  contract manufacturing 
E)  exporting 
A)  joint ventures 
B)  licensing 
C)  importing 
D)  contract manufacturing 
E)  exporting

Question 2

Bulk-breaking means separating products into grades and qualities as desired by different target markets.

Accepted Answer

A) True 
 B)False

Question 3

Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets.This creates a source of ________.

Accepted Answer

A)  vertical conflict 
B)  diagonal conflict 
C)  horizontal conflict 
D)  parallel conflict 
E)  placement conflict 
A)  vertical conflict 
B)  diagonal conflict 
C)  horizontal conflict 
D)  parallel conflict 
E)  placement conflict

Question 4

Exclusive distribution is selling through only one intermediary in each geographic area.

Accepted Answer

A) True 
 B)False

Question 5

Barnes and Noble,a multichannel bookshop,discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost.This is an example of _________ conflict.

Accepted Answer

A)  vertical 
B)  traditional 
C)  horizontal 
D)  administered 
E)  contractual 
A)  vertical 
B)  traditional 
C)  horizontal 
D)  administered 
E)  contractual

Question 6

For heterogeneous shopping goods,marketers should ________.

Accepted Answer

A)  utilize knowledgeable salespeople who can provide insights about different brands and models 
B)  sell through low-cost retailers 
C)  avoid selling through online stores 
D)  provide limited customer support as customers focus mostly on low prices 
E)  keep the level of salesforce in the retail stores to the lowest level possible 
A)  utilize knowledgeable salespeople who can provide insights about different brands and models 
B)  sell through low-cost retailers 
C)  avoid selling through online stores 
D)  provide limited customer support as customers focus mostly on low prices 
E)  keep the level of salesforce in the retail stores to the lowest level possible

Question 7

A company may be inclined to use both direct and indirect channels of distribution ________.

Accepted Answer

A)  when serving multiple target markets 
B)  when it wants total control over the marketing mix 
C)  when suitable channel partners are hard to find 
D)  when selling to business customers 
E)  when selling to final customers 
A)  when serving multiple target markets 
B)  when it wants total control over the marketing mix 
C)  when suitable channel partners are hard to find 
D)  when selling to business customers 
E)  when selling to final customers

Question 8

What do business product classes reflect?

Accepted Answer

A)  what intermediaries think about the products and how they should be marketed 
B)  what customers think about the products and how they must be priced 
C)  what distributors think about the products and how they must be distributed 
D)  what buyers think about the products and how they are used 
E)  what producers think about the products and how they are promoted 
A)  what intermediaries think about the products and how they should be marketed 
B)  what customers think about the products and how they must be priced 
C)  what distributors think about the products and how they must be distributed 
D)  what buyers think about the products and how they are used 
E)  what producers think about the products and how they are promoted

Question 9

______________ means selling a product only through those intermediaries who will give the product special attention.

Accepted Answer

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

Question 10

Distribution agreements which limit sales by customer or territory:

Accepted Answer

A)  are always illegal. 
B)  may be legal if they are horizontal agreements between producers and intermediaries. 
C)  are definitely illegal if they are horizontal agreements among competing producers or intermediaries, but may be legal if they are vertical agreements. 
D)  are definitely illegal if they are vertical agreements between producers and intermediaries. 
E)  None of these alternatives is correct. 
A)  are always illegal. 
B)  may be legal if they are horizontal agreements between producers and intermediaries. 
C)  are definitely illegal if they are horizontal agreements among competing producers or intermediaries, but may be legal if they are vertical agreements. 
D)  are definitely illegal if they are vertical agreements between producers and intermediaries. 
E)  None of these alternatives is correct.

Question 11

If Penn Hills Mfg.Corp.gives the Johnstown Distributing Co.the exclusive right to distribute Penn Hills' products in Ohio-with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio,this arrangement:

Accepted Answer

A)  Would definitely be ILLEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal. 
B)  May or may not be LEGAL-the courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition. 
C)  Would definitely be LEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are legal. 
D)  Would definitely be ILLEGAL because the courts have ruled that all horizontal arrangements between competitors are illegal. 
E)  Would definitely be LEGAL because the courts have ruled that all horizontal arrangements between competitors are legal. 
A)  Would definitely be ILLEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal. 
B)  May or may not be LEGAL-the courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition. 
C)  Would definitely be LEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are legal. 
D)  Would definitely be ILLEGAL because the courts have ruled that all horizontal arrangements between competitors are illegal. 
E)  Would definitely be LEGAL because the courts have ruled that all horizontal arrangements between competitors are legal.

Question 12

Sony manufactures clock radios in quantities of more than 100,000 in a given time period-but the average consumer wants only one clock radio at a time.This difference is an example of

Accepted Answer

A)  a regrouping activities. 
B)  a discrepancy of assortment. 
C)  a discrepancy of quantity. 
D)  a sorting error. 
E)  re-assorting. 
A)  a regrouping activities. 
B)  a discrepancy of assortment. 
C)  a discrepancy of quantity. 
D)  a sorting error. 
E)  re-assorting.

Question 13

Channels of distribution:

Accepted Answer

A)  that include intermediaries result in higher distribution costs than channels without intermediaries. 
B)  should be designed to increase discrepancies of quantity between producers and consumers. 
C)  usually do not involve conflicts as long as each channel member has profit as a goal. 
D)  usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly. 
E)  are always characterized by conflict among channel members. 
A)  that include intermediaries result in higher distribution costs than channels without intermediaries. 
B)  should be designed to increase discrepancies of quantity between producers and consumers. 
C)  usually do not involve conflicts as long as each channel member has profit as a goal. 
D)  usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly. 
E)  are always characterized by conflict among channel members.

Question 14

Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best illustrates adjusting "discrepancies of assortment?"

Accepted Answer

A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 310 million U.S. consumers are served by approximately 330,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States. 
A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 310 million U.S. consumers are served by approximately 330,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States.

Question 16

Product recalls,returns,and recycling plans require some firms to use ________.

Accepted Answer

A)  vertical integration 
B)  contractual channel systems 
C)  exclusive distribution 
D)  selective distribution 
E)  reverse channels 
A)  vertical integration 
B)  contractual channel systems 
C)  exclusive distribution 
D)  selective distribution 
E)  reverse channels

Question 17

Traditional channels of distribution ________.

Accepted Answer

A)  do not perform bulk-breaking activities 
B)  are usually preferred to other distribution arrangements 
C)  are easier to control than corporate channel systems 
D)  may involve little or no cooperation among channel members 
E)  are usually controlled through strong legal contracts 
A)  do not perform bulk-breaking activities 
B)  are usually preferred to other distribution arrangements 
C)  are easier to control than corporate channel systems 
D)  may involve little or no cooperation among channel members 
E)  are usually controlled through strong legal contracts

Question 18

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Accepted Answer

A) True 
 B)False

Question 19

________ means selling the right to use some process,trademark,patent,or other right for a fee or royalty.

Accepted Answer

A)  Licensing 
B)  Management contracting 
C)  Joint venturing 
D)  Exporting 
E)  Direct investment 
A)  Licensing 
B)  Management contracting 
C)  Joint venturing 
D)  Exporting 
E)  Direct investment

Question 20

_____ means separating products into grades and qualities as desired by different target markets.

Accepted Answer

A)  Bulk-breaking 
B)  Sorting 
C)  Accumulating 
D)  Assorting 
E)  Discrepancy of quality 
A)  Bulk-breaking 
B)  Sorting 
C)  Accumulating 
D)  Assorting 
E)  Discrepancy of quality

Exam 12: Place and Development of Channel Systems

Selling products manufactured in the United States to foreign customers-often without any product changes-is called ________.

Bulk-breaking means separating products into grades and qualities as desired by different target markets.

Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets.This creates a source of ________.

Exclusive distribution is selling through only one intermediary in each geographic area.

Barnes and Noble,a multichannel bookshop,discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost.This is an example of _________ conflict.

For heterogeneous shopping goods,marketers should ________.

A company may be inclined to use both direct and indirect channels of distribution ________.

What do business product classes reflect?

______________ means selling a product only through those intermediaries who will give the product special attention.

Distribution agreements which limit sales by customer or territory:

If Penn Hills Mfg.Corp.gives the Johnstown Distributing Co.the exclusive right to distribute Penn Hills' products in Ohio-with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio,this arrangement:

Sony manufactures clock radios in quantities of more than 100,000 in a given time period-but the average consumer wants only one clock radio at a time.This difference is an example of

Channels of distribution:

Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Which of the following best illustrates adjusting "discrepancies of assortment?"

Product recalls,returns,and recycling plans require some firms to use ________.

Traditional channels of distribution ________.

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

________ means selling the right to use some process,trademark,patent,or other right for a fee or royalty.

_____ means separating products into grades and qualities as desired by different target markets.

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