Question 1

Distribution agreements which limit sales by customer or territory:

Accepted Answer

A)  are always illegal. 
B)  may be legal if they are vertical agreements between producers and intermediaries. 
C)  are definitely illegal if they are horizontal agreements among competing producers or intermediaries. 
D)  are definitely illegal if they are vertical agreements between producers and intermediaries. 
E)  Both B and C are true. 
A)  are always illegal. 
B)  may be legal if they are vertical agreements between producers and intermediaries. 
C)  are definitely illegal if they are horizontal agreements among competing producers or intermediaries. 
D)  are definitely illegal if they are vertical agreements between producers and intermediaries. 
E)  Both B and C are true.

Question 2

Which of the following statements about Place decisions is True?

Accepted Answer

A)  Product classes are not related to Place objectives. 
B)  The product life cycle is not related to Place objectives. 
C)  Place decisions are short-term decisions that are easy to change. 
D)  Different market segments may require separate Place arrangements. 
E)  All of the above. 
A)  Product classes are not related to Place objectives. 
B)  The product life cycle is not related to Place objectives. 
C)  Place decisions are short-term decisions that are easy to change. 
D)  Different market segments may require separate Place arrangements. 
E)  All of the above.

Question 3

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manager

Accepted Answer

A)  should offer purchase discounts based on the quantity of mattresses that the retailer sells. 
B)  assume that all channel members have a common commitment to target consumers at the end of the channel. 
C)  trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer. 
D)  develop different brands or product lines for different channels. 
E)  expect one of the large retail chains to step up to the responsibilities of being the channel captain. 
A)  should offer purchase discounts based on the quantity of mattresses that the retailer sells. 
B)  assume that all channel members have a common commitment to target consumers at the end of the channel. 
C)  trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer. 
D)  develop different brands or product lines for different channels. 
E)  expect one of the large retail chains to step up to the responsibilities of being the channel captain.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:

Accepted Answer

A)  dual distribution. 
B)  reverse distribution. 
C)  a contractual channel system. 
D)  vertical integration. 
E)  accumulating. 
A)  dual distribution. 
B)  reverse distribution. 
C)  a contractual channel system. 
D)  vertical integration. 
E)  accumulating.

Question 7

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

Accepted Answer

A) True 
 B)False

Question 8

The Internet is making it possible for firms to reach customers that were impossible to reach before.

Accepted Answer

A) True 
 B)False

Question 9

____ 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 10

Intermediaries in indirect channels of distribution:

Accepted Answer

A)  Often perform functions that producers cannot perform efficiently by themselves. 
B)  Do not provide additional convenience to consumers. 
C)  Increase the need for producers to make large investments in distribution facilities and personnel. 
D)  Make it necessary for producers to carry more inventories. 
E)  All of the above. 
A)  Often perform functions that producers cannot perform efficiently by themselves. 
B)  Do not provide additional convenience to consumers. 
C)  Increase the need for producers to make large investments in distribution facilities and personnel. 
D)  Make it necessary for producers to carry more inventories. 
E)  All of the above.

Question 11

The need for reverse channels may arise in all of the following situations EXCEPT

Accepted Answer

A)  a consumer buys something in error and wants to return it. 
B)  a firm makes an error in completing an order. 
C)  a product is recalled for safety reasons. 
D)  a consumer changes her mind after purchasing a product. 
E)  All of the above create a need for reverse channels. 
A)  a consumer buys something in error and wants to return it. 
B)  a firm makes an error in completing an order. 
C)  a product is recalled for safety reasons. 
D)  a consumer changes her mind after purchasing a product. 
E)  All of the above create a need for reverse channels.

Question 12

Reverse channels may be used to retrieve products from:

Accepted Answer

A)  business customers 
B)  final consumers 
C)  intermediaries 
D)  all of the above 
E)  only A and C above 
A)  business customers 
B)  final consumers 
C)  intermediaries 
D)  all of the above 
E)  only A and C above

Question 13

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Accepted Answer

A)  Corporate 
B)  Traditional 
C)  Administered 
D)  Contractual 
E)  Technical 
A)  Corporate 
B)  Traditional 
C)  Administered 
D)  Contractual 
E)  Technical

Question 14

The best level of market exposure for a product

Accepted Answer

A)  always costs more, but the higher costs lead to higher sales and profits. 
B)  is the level which will result in the highest level of attention by intermediaries. 
C)  is the one which minimizes distribution costs. 
D)  is intensive distribution. 
E)  makes a product available widely enough to satisfy target customers' needs but NOT exceed them. 
A)  always costs more, but the higher costs lead to higher sales and profits. 
B)  is the level which will result in the highest level of attention by intermediaries. 
C)  is the one which minimizes distribution costs. 
D)  is intensive distribution. 
E)  makes a product available widely enough to satisfy target customers' needs but NOT exceed them.

Question 15

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)  all of the above. 
E)  none of the above. 
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)  all of the above. 
E)  none of the above.

Question 16

From a producer's viewpoint, which of the following is an advantage of INTENSIVE DISTRIBUTION over selective distribution?

Accepted Answer

A)  Intermediaries' price-cutting may be reduced. 
B)  Intermediaries' facilities will be more convenient for customers. 
C)  Intermediaries can be required to carry larger stocks. 
D)  More aggressive selling can be expected from intermediaries. 
E)  Better service can be required from intermediaries. 
A)  Intermediaries' price-cutting may be reduced. 
B)  Intermediaries' facilities will be more convenient for customers. 
C)  Intermediaries can be required to carry larger stocks. 
D)  More aggressive selling can be expected from intermediaries. 
E)  Better service can be required from intermediaries.

Question 17

Use this information for questions 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.
-Which of the following appears to best describe ATB's channel arrangements?

Accepted Answer

A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Global distribution 
E)  Direct distribution 
A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Global distribution 
E)  Direct distribution

Question 18

"Place" decisions:

Accepted Answer

A)  may focus on the location of retail stores and wholesale facilities. 
B)  may focus on the selection and use of intermediaries and collaborators. 
C)  can be aided by knowing about the product classes. 
D)  are harder to change than Product, Promotion, or Price decisions. 
E)  All of the above are true. 
A)  may focus on the location of retail stores and wholesale facilities. 
B)  may focus on the selection and use of intermediaries and collaborators. 
C)  can be aided by knowing about the product classes. 
D)  are harder to change than Product, Promotion, or Price decisions. 
E)  All of the above are true.

Question 19

In an indirect channel of distribution, both vertical conflict and horizontal conflict may arise.

Accepted Answer

A) True 
 B)False

Question 20

_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.

Accepted Answer

A)  A channel executive 
B)  A channel captain 
C)  A distribution manager 
D)  Channel coordinator 
E)  Distribution leader 
A)  A channel executive 
B)  A channel captain 
C)  A distribution manager 
D)  Channel coordinator 
E)  Distribution leader

Exam 11: Place and Development of Channel Systems

Distribution agreements which limit sales by customer or territory:

Which of the following statements about Place decisions is True?

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manager

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

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

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

The Internet is making it possible for firms to reach customers that were impossible to reach before.

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

Intermediaries in indirect channels of distribution:

The need for reverse channels may arise in all of the following situations EXCEPT

Reverse channels may be used to retrieve products from:

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

The best level of market exposure for a product

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

From a producer's viewpoint, which of the following is an advantage of INTENSIVE DISTRIBUTION over selective distribution?

"Place" decisions:

In an indirect channel of distribution, both vertical conflict and horizontal conflict may arise.

_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

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, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

Filters