Question 1

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 2

Which of the following is the easiest way for a firm to enter foreign markets?

Accepted Answer

A)  joint ventures 
B)  licensing 
C)  multinational bargaining 
D)  direct investment 
E)  management contracting 
A)  joint ventures 
B)  licensing 
C)  multinational bargaining 
D)  direct investment 
E)  management contracting

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

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

Accepted Answer

A)  bulk-breaking. 
B)  sorting. 
C)  accumulating. 
D)  assorting. 
E)  discrepancy of quantity. 
A)  bulk-breaking. 
B)  sorting. 
C)  accumulating. 
D)  assorting. 
E)  discrepancy of quantity.

Question 5

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 wholesalers and more retail outlets, this is likely to

Accepted Answer

A)  create horizontal channel conflict. 
B)  lead to vertical channel conflict. 
C)  require that the largest wholesaler take over the channel captain role. 
D)  increase trust and cooperation in the channel. 
E)  prompt both vertical and horizontal channel conflict. 
A)  create horizontal channel conflict. 
B)  lead to vertical channel conflict. 
C)  require that the largest wholesaler take over the channel captain role. 
D)  increase trust and cooperation in the channel. 
E)  prompt both vertical and horizontal channel conflict.

Question 6

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 7

In administered channel systems, vertical cooperation is achieved by acquiring firms at different levels of activity.

Accepted Answer

A) True 
 B)False

Question 8

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)  None of these alternatives is correct. 
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)  None of these alternatives is correct.

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

Which of the following is the easiest way for a firm to enter foreign markets?

Strategy "Place" decisions would NOT include:

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

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.

In administered channel systems, vertical cooperation is achieved by acquiring firms at different levels of activity.

Intermediaries in indirect channels of 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

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

Which of the following is the easiest way for a firm to enter foreign markets?

Strategy "Place" decisions would NOT include:

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

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.

In administered channel systems, vertical cooperation is achieved by acquiring firms at different levels of activity.

Intermediaries in indirect channels of 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