Question 1

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Accepted Answer

A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation. 
A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation.

Question 2

Which of the following statements about Place is not true?

Accepted Answer

A)  Most consumer products move from producer to intermediaries to final customer. 
B)  A series of participants in the flow of goods and services from producer to final customer is called a channel of distribution. 
C)  There is always one Place arrangement that is "best" for a product. 
D)  Intermediaries develop to adjust discrepancies in quantity and assortment. 
E)  All of these statements about Place are true. 
A)  Most consumer products move from producer to intermediaries to final customer. 
B)  A series of participants in the flow of goods and services from producer to final customer is called a channel of distribution. 
C)  There is always one Place arrangement that is "best" for a product. 
D)  Intermediaries develop to adjust discrepancies in quantity and assortment. 
E)  All of these statements about Place are true.

Question 3

Which of the following best illustrates adjusting "discrepancies of assortment?"

Accepted Answer

A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 310 million U.S. consumers are served by around 330,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States. 
A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 310 million U.S. consumers are served by around 330,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States.

Question 4

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates

Accepted Answer

A)  vertical conflict. 
B)  exclusive distribution rights. 
C)  competitive discrepancy. 
D)  horizontal conflict. 
E)  reverse channels. 
A)  vertical conflict. 
B)  exclusive distribution rights. 
C)  competitive discrepancy. 
D)  horizontal conflict. 
E)  reverse channels.

Question 5

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

Accepted Answer

A) True 
 B)False

Question 6

Because wholesalers and retailers are closer to the final user, they are in an ideal position to assume the channel captain role.

Accepted Answer

A) True 
 B)False

Question 7

To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as:

Accepted Answer

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.

Accepted Answer

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

Question 10

"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 11

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.
These three tennis ball producers all rely on retailers to reach consumers who want to buy only a few balls at a time. Apparently they all think that this is an efficient way to

Accepted Answer

A)  deal with sorting activities. 
B)  address discrepancies of quantity. 
C)  handle discrepancies of assortment. 
D)  minimize the potential for conflict in the channel. 
E)  achieve intensive distribution. 
A)  deal with sorting activities. 
B)  address discrepancies of quantity. 
C)  handle discrepancies of assortment. 
D)  minimize the potential for conflict in the channel. 
E)  achieve intensive distribution.

Question 12

Exporting has an advantage compared to other types of international involvement, because it is usually easier to drop or change arrangements as the firm's needs change.

Accepted Answer

A) True 
 B)False

Question 13

A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.

Accepted Answer

A)  contractual channel 
B)  dual distribution 
C)  traditional channel 
D)  administered channel 
E)  franchising 
A)  contractual channel 
B)  dual distribution 
C)  traditional channel 
D)  administered channel 
E)  franchising

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

"Intensive distribution" means selling through:

Accepted Answer

A)  only one channel of distribution. 
B)  all responsible and suitable retailers or wholesalers. 
C)  only one intermediary in a particular geographic area. 
D)  only those intermediaries who give the product special attention. 
E)  all retail outlets. 
A)  only one channel of distribution. 
B)  all responsible and suitable retailers or wholesalers. 
C)  only one intermediary in a particular geographic area. 
D)  only those intermediaries who give the product special attention. 
E)  all retail outlets.

Question 16

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:

Accepted Answer

A)  Multichannel distribution. 
B)  Exclusive distribution. 
C)  Administered distribution. 
D)  Intensive distribution. 
E)  Selective distribution. 
A)  Multichannel distribution. 
B)  Exclusive distribution. 
C)  Administered distribution. 
D)  Intensive distribution. 
E)  Selective distribution.

Question 17

Choosing an indirect channel probably will be better than a direct channel if a producer wants to:

Accepted Answer

A)  provide special technical service. 
B)  make it easier to do marketing research. 
C)  be more sensitive to coming changes in customer needs and attitudes. 
D)  obtain a very aggressive selling effort. 
E)  adjust large discrepancies of quantity and assortment. 
A)  provide special technical service. 
B)  make it easier to do marketing research. 
C)  be more sensitive to coming changes in customer needs and attitudes. 
D)  obtain a very aggressive selling effort. 
E)  adjust large discrepancies of quantity and assortment.

Question 18

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 19

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Which of the following statements about Place is not true?

Which of the following best illustrates adjusting "discrepancies of assortment?"

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

Because wholesalers and retailers are closer to the final user, they are in an ideal position to assume the channel captain role.

To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as:

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

When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.

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

Exporting has an advantage compared to other types of international involvement, because it is usually easier to drop or change arrangements as the firm's needs change.

A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.

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

"Intensive distribution" means selling through:

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:

Choosing an indirect channel probably will be better than a direct channel if a producer wants to:

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

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

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

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

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Which of the following statements about Place is not true?

Which of the following best illustrates adjusting "discrepancies of assortment?"

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

Because wholesalers and retailers are closer to the final user, they are in an ideal position to assume the channel captain role.

To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as:

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

When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.

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

Exporting has an advantage compared to other types of international involvement, because it is usually easier to drop or change arrangements as the firm's needs change.

A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.

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

"Intensive distribution" means selling through:

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:

Choosing an indirect channel probably will be better than a direct channel if a producer wants to:

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

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

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

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