Question 1

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

Accepted Answer

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

Question 2

Selling direct-to-customer is more common with business products than consumer products.

Accepted Answer

A) True 
 B)False

Question 3

Strategy "Place" decisions would NOT include:

Accepted Answer

A)  geographic pricing policy. 
B)  type of channel of distribution. 
C)  type of intermediaries/collaborators. 
D)  type of physical distribution facilities. 
E)  degree of market exposure desired. 
A)  geographic pricing policy. 
B)  type of channel of distribution. 
C)  type of intermediaries/collaborators. 
D)  type of physical distribution facilities. 
E)  degree of market exposure desired.

Question 4

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Accepted Answer

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

Question 5

"Ideal market exposure" should make a product widely enough available to satisfy target customers' needs, but not exceed them.

Accepted Answer

A) True 
 B)False

Question 6

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

Accepted Answer

A) True 
 B)False

Question 7

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

Accepted Answer

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

Question 8

Intensive distribution is selling through only those intermediaries who will give the product special attention.

Accepted Answer

A) True 
 B)False

Question 9

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Accepted Answer

A) True 
 B)False

Question 10

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

"Ideal market exposure" means selling a product through all intermediaries willing to stock and sell it.

Accepted Answer

A) True 
 B)False

Question 13

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 14

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is MOST likely selling the rights to use its:

Accepted Answer

A)  production facilities. 
B)  brand name. 
C)  channels of distribution. 
D)  sales force. 
E)  Any of the above are equally likely. 
A)  production facilities. 
B)  brand name. 
C)  channels of distribution. 
D)  sales force. 
E)  Any of the above are equally likely.

Question 15

"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 16

A computer manufacturer runs training programs for its "cooperating" retailers' salespeople, as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of:

Accepted Answer

A)  an administered channel system. 
B)  a contractual channel system. 
C)  a traditional channel system 
D)  a vertically integrated corporate channel system. 
E)  a franchising system. 
A)  an administered channel system. 
B)  a contractual channel system. 
C)  a traditional channel system 
D)  a vertically integrated corporate channel system. 
E)  a franchising system.

Question 17

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of direct distribution?

Accepted Answer

A)  It requires a significant investment in facilities. 
B)  It reduces a producer's need for working capital. 
C)  Direct distribution always serves customer needs better and at a lower cost. 
D)  Most firms selling consumer products rely on direct distribution. 
E)  It is easy to change customer buying patterns from indirect distribution to direct distribution. 
A)  It requires a significant investment in facilities. 
B)  It reduces a producer's need for working capital. 
C)  Direct distribution always serves customer needs better and at a lower cost. 
D)  Most firms selling consumer products rely on direct distribution. 
E)  It is easy to change customer buying patterns from indirect distribution to direct distribution.

Question 19

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been

Accepted Answer

A)  shown to increase competition. 
B)  a regular practice in the U.S. 
C)  encouraged in the U.S. but not in many international markets. 
D)  a successful strategy for entering international markets. 
E)  ruled illegal by the U.S. Supreme Court. 
A)  shown to increase competition. 
B)  a regular practice in the U.S. 
C)  encouraged in the U.S. but not in many international markets. 
D)  a successful strategy for entering international markets. 
E)  ruled illegal by the U.S. Supreme Court.

Question 20

_____ means separating products into grades and qualities 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 11: Place and Development of Channel Systems

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

Selling direct-to-customer is more common with business products than consumer products.

Strategy "Place" decisions would NOT include:

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

"Ideal market exposure" should make a product widely enough available to satisfy target customers' needs, but not exceed them.

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

Intensive distribution is selling through only those intermediaries who will give the product special attention.

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

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

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

"Ideal market exposure" means selling a product through all intermediaries willing to stock and sell it.

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

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is MOST likely selling the rights to use its:

"Discrepancies of assortment" means:

A computer manufacturer runs training programs for its "cooperating" retailers' salespeople, as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of:

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Which of the following is true of direct distribution?

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been

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

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

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