Question 1

Worldwide Drilling,Inc.of Fort Worth,Texas,operates an oil well in Russia for its owners.Worldwide is involved in:

Accepted Answer

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

Question 2

According to the text,it's best for the "channel captain" to be a producer rather than a wholesaler or retailer.

Accepted Answer

A) True 
 B)False

Question 3

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 retail outlets,which of the following would help it to manage channel conflict:

Accepted Answer

A)  assign the channel captain role to the largest retail chain. 
B)  sell a different brand of tennis ball through the new retailers than what it sells through current retailers. 
C)  select new retail outlets that target the same customers as those who buy from its current retailers. 
D)  choose new retailers in the same geographic market as its current retailers but who sell at lower prices. 
E)  drop its national advertising and leave it to retailers to promote its tennis balls. 
A)  assign the channel captain role to the largest retail chain. 
B)  sell a different brand of tennis ball through the new retailers than what it sells through current retailers. 
C)  select new retail outlets that target the same customers as those who buy from its current retailers. 
D)  choose new retailers in the same geographic market as its current retailers but who sell at lower prices. 
E)  drop its national advertising and leave it to retailers to promote its tennis balls.

Question 4

Small farmers in the mountains of Peru pick coffee beans by hand,obtaining only a bucket a day.Then they sell them to buyers who put the beans in large bags to be shipped to processors.This regrouping activity is called:

Accepted Answer

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

Question 5

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers,but a nearby discount store with very few sales staff sells the same TVs at a lower price.This is an example of __________ conflict.

Accepted Answer

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

Question 6

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a:

Accepted Answer

A)  Channel director. 
B)  Channel coordinator. 
C)  Channel captain. 
D)  Channel ombudsman. 
E)  Channel troubleshooter. 
A)  Channel director. 
B)  Channel coordinator. 
C)  Channel captain. 
D)  Channel ombudsman. 
E)  Channel troubleshooter.

Question 7

Which of the following is NOT one of the degrees of market exposure?

Accepted Answer

A)  Selective distribution 
B)  Multichannel distribution 
C)  Intensive distribution 
D)  Exclusive distribution 
E)  None of these, i.e. all are degrees of market exposure 
A)  Selective distribution 
B)  Multichannel distribution 
C)  Intensive distribution 
D)  Exclusive distribution 
E)  None of these, i.e. all are degrees of market exposure

Question 8

Business products tend to be sold direct to customers because compared to consumer products because ________.

Accepted Answer

A)  business markets have more transactions 
B)  orders are smaller in size 
C)  e-commerce systems can efficiently handle orders once relationships are established 
D)  customers are usually widely dispersed across geographic areas 
E)  business products always use direct distribution 
A)  business markets have more transactions 
B)  orders are smaller in size 
C)  e-commerce systems can efficiently handle orders once relationships are established 
D)  customers are usually widely dispersed across geographic areas 
E)  business products always use direct distribution

Question 9

"Discrepancies of assortment" means ________.

Accepted Answer

A)  some producers can produce more products than others 
B)  some consumers buy more products than others 
C)  consumers want more output than producers can make 
D)  there are more producers than wholesalers 
E)  the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users 
A)  some producers can produce more products than others 
B)  some consumers buy more products than others 
C)  consumers want more output than producers can make 
D)  there are more producers than wholesalers 
E)  the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users

Question 10

A firm that has a lot of "management know-how," but expects production problems in a foreign market,might be wise to use management contracting.

Accepted Answer

A) True 
 B)False

Question 11

Josh Adams runs a large cattle farm in Texas.In order to take advantage of higher prices for beef in Europe compared to the United States,he has started selling cattle overseas by using an agent wholesaler who specializes in finding European customers for U.S.firms.He ships the cattle to Europe by water transport.Josh is involved in:

Accepted Answer

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

Question 12

Which of the following is true of a producer-led channel system?

Accepted Answer

A)  The intermediaries do not support the producer at any stage. 
B)  The system is implemented when producers are small. 
C)  Intermediaries select the target market, while producers develop the product. 
D)  The system is effective when a producer's brand requires penetration pricing. 
E)  Producers fix the prices of their offerings. 
A)  The intermediaries do not support the producer at any stage. 
B)  The system is implemented when producers are small. 
C)  Intermediaries select the target market, while producers develop the product. 
D)  The system is effective when a producer's brand requires penetration pricing. 
E)  Producers fix the prices of their offerings.

Question 13

Direct marketing is primarily concerned with Promotion,not Place.

Accepted Answer

A) True 
 B)False

Question 14

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

Accepted Answer

A)  marketing 
B)  selling 
C)  distribution 
D)  servicing 
E)  pricing 
A)  marketing 
B)  selling 
C)  distribution 
D)  servicing 
E)  pricing

Question 15

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.
National Tennis Ball's channel arrangement:

Accepted Answer

A)  is called horizontal distribution. 
B)  is an example of intensive distribution. 
C)  illustrates a traditional channel system. 
D)  relies on exclusive distribution. 
E)  is likely to be characterized by a high level of conflict between channel members. 
A)  is called horizontal distribution. 
B)  is an example of intensive distribution. 
C)  illustrates a traditional channel system. 
D)  relies on exclusive distribution. 
E)  is likely to be characterized by a high level of conflict between channel members.

Question 16

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Accepted Answer

A) True 
 B)False

Question 17

A wholesaler might help a producer by reducing the producer's need to carry large inventory stocks.

Accepted Answer

A) True 
 B)False

Question 18

"Selective distribution" means selling through ________.

Accepted Answer

A)  retailers but not wholesalers 
B)  multichannel distribution 
C)  all responsible and suitable wholesalers 
D)  only those wholesalers and retailers who give the product special attention 
E)  only one wholesaler or retailer in each geographic area 
A)  retailers but not wholesalers 
B)  multichannel distribution 
C)  all responsible and suitable wholesalers 
D)  only those wholesalers and retailers who give the product special attention 
E)  only one wholesaler or retailer in each geographic area

Question 19

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

Accepted Answer

A) True 
 B)False

Question 20

Management contracting is a relatively low risk way of entering foreign markets,since no commitment is made to fixed facilities.

Accepted Answer

A) True 
 B)False

Worldwide Drilling,Inc.of Fort Worth,Texas,operates an oil well in Russia for its owners.Worldwide is involved in:

According to the text,it's best for the "channel captain" to be a producer rather than a wholesaler or retailer.

Small farmers in the mountains of Peru pick coffee beans by hand,obtaining only a bucket a day.Then they sell them to buyers who put the beans in large bags to be shipped to processors.This regrouping activity is called:

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers,but a nearby discount store with very few sales staff sells the same TVs at a lower price.This is an example of __________ conflict.

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a:

Which of the following is NOT one of the degrees of market exposure?

Business products tend to be sold direct to customers because compared to consumer products because ________.

"Discrepancies of assortment" means ________.

A firm that has a lot of "management know-how," but expects production problems in a foreign market,might be wise to use management contracting.

Which of the following is true of a producer-led channel system?

Direct marketing is primarily concerned with Promotion,not Place.

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

A wholesaler might help a producer by reducing the producer's need to carry large inventory stocks.

"Selective distribution" means selling through ________.

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

Management contracting is a relatively low risk way of entering foreign markets,since no commitment is made to fixed facilities.

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

Worldwide Drilling,Inc.of Fort Worth,Texas,operates an oil well in Russia for its owners.Worldwide is involved in:

According to the text,it's best for the "channel captain" to be a producer rather than a wholesaler or retailer.

Small farmers in the mountains of Peru pick coffee beans by hand,obtaining only a bucket a day.Then they sell them to buyers who put the beans in large bags to be shipped to processors.This regrouping activity is called:

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers,but a nearby discount store with very few sales staff sells the same TVs at a lower price.This is an example of __________ conflict.

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a:

Which of the following is NOT one of the degrees of market exposure?

Business products tend to be sold direct to customers because compared to consumer products because ________.

"Discrepancies of assortment" means ________.

A firm that has a lot of "management know-how," but expects production problems in a foreign market,might be wise to use management contracting.

Which of the following is true of a producer-led channel system?

Direct marketing is primarily concerned with Promotion,not Place.

Direct ________ involves personal sales contact between a representative of the company and an individual consumer.

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

A wholesaler might help a producer by reducing the producer's need to carry large inventory stocks.

"Selective distribution" means selling through ________.

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

Management contracting is a relatively low risk way of entering foreign markets,since no commitment is made to fixed facilities.

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