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. A

Question 2

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Accepted Answer

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

Question 3

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

Accepted Answer

A) True 
 B)False  True

Question 4

A "channel captain"

Accepted Answer

A)  might be any member of the channel (that is, at any level in the channel). 
B)  views the members of the channel as a unit. 
C)  should help to make the channel more efficient by reducing conflict. 
D)  All of these alternatives are correct. 
A)  might be any member of the channel (that is, at any level in the channel). 
B)  views the members of the channel as a unit. 
C)  should help to make the channel more efficient by reducing conflict. 
D)  All of these alternatives are correct.

Question 5

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

The "regrouping activity" which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called:

Accepted Answer

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

Question 9

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

Accepted Answer

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

Question 10

A disadvantage of direct-to-customer channels is that

Accepted Answer

A)  most organizational buyers are used to relying on intermediaries to serve as their purchasing advisors. 
B)  they require producers to shift many marketing functions to others. 
C)  this approach makes it hard to achieve coordination among the required marketing activities. 
D)  they make it more difficult to get information about changing needs of the market. 
E)  None of these is a disadvantage of direct-to-customer channels. 
A)  most organizational buyers are used to relying on intermediaries to serve as their purchasing advisors. 
B)  they require producers to shift many marketing functions to others. 
C)  this approach makes it hard to achieve coordination among the required marketing activities. 
D)  they make it more difficult to get information about changing needs of the market. 
E)  None of these is a disadvantage of direct-to-customer channels.

Question 11

A channel of distribution:

Accepted Answer

A)  is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B)  is only needed when products must be stored. 
C)  must include one or more intermediaries. 
D)  is only needed when products are sold indirectly. 
E)  None of these alternatives is a good answer. 
A)  is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B)  is only needed when products must be stored. 
C)  must include one or more intermediaries. 
D)  is only needed when products are sold indirectly. 
E)  None of these alternatives is a good answer.

Question 12

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 13

Licensing, in international marketing,

Accepted Answer

A)  refers to foreign intermediaries agreeing to sell products produced in this country. 
B)  requires a producer to pay a licensing fee to the country where it wants to sell its products. 
C)  increases the risk that a company's production facilities will be taken over by the foreign country. 
D)  means a company selling the right to use a process, trademark, patent, or other right for a fee or royalty. 
E)  None of these alternatives is correct. 
A)  refers to foreign intermediaries agreeing to sell products produced in this country. 
B)  requires a producer to pay a licensing fee to the country where it wants to sell its products. 
C)  increases the risk that a company's production facilities will be taken over by the foreign country. 
D)  means a company selling the right to use a process, trademark, patent, or other right for a fee or royalty. 
E)  None of these alternatives is correct.

Question 14

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 15

Digital products cost more to distribute than physical products.

Accepted Answer

A) True 
 B)False

Question 16

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

Accepted Answer

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

Question 17

Vertical marketing systems account for a majority of U.S. retail sales.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is NOT a true statement about traditional channel systems?

Accepted Answer

A)  Channel members make little or no effort to cooperate with each other. 
B)  Channel members buy and sell from each other. 
C)  Each channel member does only what it considers to be in its own best interest. 
D)  Members of these channels have their independence, but they may pay for it too. 
E)  Control is maintained by economic power and leadership. 
A)  Channel members make little or no effort to cooperate with each other. 
B)  Channel members buy and sell from each other. 
C)  Each channel member does only what it considers to be in its own best interest. 
D)  Members of these channels have their independence, but they may pay for it too. 
E)  Control is maintained by economic power and leadership.

Question 19

A firm would prefer an administered channel system to a corporate channel system for all the following reasons except:

Accepted Answer

A)  Managing all manufacturing, wholesaling, and retailing functions in a channel is too challenging. 
B)  Administered channel systems are more costly to operate than corporate systems. 
C)  Corporate channel systems offer more control over marketing activities than administered systems. 
D)  Administered channel systems offer good enough channel cooperation for the firms' distribution needs. 
E)  Administered channel systems have some of the same benefits of corporate channel systems but without the expense. 
A)  Managing all manufacturing, wholesaling, and retailing functions in a channel is too challenging. 
B)  Administered channel systems are more costly to operate than corporate systems. 
C)  Corporate channel systems offer more control over marketing activities than administered systems. 
D)  Administered channel systems offer good enough channel cooperation for the firms' distribution needs. 
E)  Administered channel systems have some of the same benefits of corporate channel systems but without the expense.

Question 20

Which of the following is true of selective distribution?

Accepted Answer

A)  It is commonly needed for convenience products and business supplies used by all offices. 
B)  It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  It is selling through only one intermediary in a particular geographic area. 
D)  It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  It is selling through only those intermediaries who will give the product special attention. 
A)  It is commonly needed for convenience products and business supplies used by all offices. 
B)  It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  It is selling through only one intermediary in a particular geographic area. 
D)  It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  It is selling through only those intermediaries who will give the product special attention.

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

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

A "channel captain"

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

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

The "regrouping activity" which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called:

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

A disadvantage of direct-to-customer channels is that

A channel of distribution:

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

Licensing, in international marketing,

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

Digital products cost more to distribute than physical products.

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

Vertical marketing systems account for a majority of U.S. retail sales.

Which of the following is NOT a true statement about traditional channel systems?

A firm would prefer an administered channel system to a corporate channel system for all the following reasons except:

Which of the following is true of selective distribution?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing 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

Promotionintroduction 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

Filters

Exam 10: 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:

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

A "channel captain"

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

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

The "regrouping activity" which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called:

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

A disadvantage of direct-to-customer channels is that

A channel of distribution:

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

Licensing, in international marketing,

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

Digital products cost more to distribute than physical products.

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

Vertical marketing systems account for a majority of U.S. retail sales.

Which of the following is NOT a true statement about traditional channel systems?

A firm would prefer an administered channel system to a corporate channel system for all the following reasons except:

Which of the following is true of selective distribution?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing 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

Promotionintroduction 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

Filters