Question 1

A firm acquiring another firm at a different level of activity within a channel of distribution is called:

Accepted Answer

A)  vertical integration. 
B)  a tying contract. 
C)  dual distribution. 
D)  horizontal integration. 
E)  a regrouping activity. 
A)  vertical integration. 
B)  a tying contract. 
C)  dual distribution. 
D)  horizontal integration. 
E)  a regrouping activity.

Question 2

A direct-to-customer channel

Accepted Answer

A)  includes a retailer but not a wholesaler. 
B)  usually helps the producer to be more aware of changes in final customer attitudes. 
C)  eliminates some of the marketing functions. 
D)  is typical to reach final consumer markets. 
E)  is most suitable when a large number of transactions are required in the channel or when orders are smaller. 
A)  includes a retailer but not a wholesaler. 
B)  usually helps the producer to be more aware of changes in final customer attitudes. 
C)  eliminates some of the marketing functions. 
D)  is typical to reach final consumer markets. 
E)  is most suitable when a large number of transactions are required in the channel or when orders are smaller.

Question 3

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

Accepted Answer

A)  administered 
B)  intensive 
C)  horizontal 
D)  selective 
E)  exclusive 
A)  administered 
B)  intensive 
C)  horizontal 
D)  selective 
E)  exclusive

Question 4

A channel of distribution is a series of firms or individuals participating in the flow of products from the producer to the consumer.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Legal concerns about channel of distribution arrangements are most likely to arise when:

Accepted Answer

A)  a traditional channel system is involved. 
B)  there are horizontal arrangements between firms at the same level of the channel. 
C)  the firm is using intensive distribution. 
D)  a firm uses multichannel distribution to reach its target markets. 
E)  a corporate channel system is involved. 
A)  a traditional channel system is involved. 
B)  there are horizontal arrangements between firms at the same level of the channel. 
C)  the firm is using intensive distribution. 
D)  a firm uses multichannel distribution to reach its target markets. 
E)  a corporate channel system is involved.

Question 7

Intensive distribution is

Accepted Answer

A)  selling through only those wholesalers or retailers who will give the product special attention. 
B)  selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  selling through only one wholesaler or retailer in a particular geographic area. 
D)  making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  used to gain some of the advantages of exclusive distribution-while still achieving fairly widespread market coverage. 
A)  selling through only those wholesalers or retailers who will give the product special attention. 
B)  selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  selling through only one wholesaler or retailer in a particular geographic area. 
D)  making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  used to gain some of the advantages of exclusive distribution-while still achieving fairly widespread market coverage.

Question 8

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 9

A disadvantage of direct-to-customer channels is that they

Accepted Answer

A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of these is a disadvantage of direct-to-customer channels. 
A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of these is a disadvantage of direct-to-customer channels.

Question 10

Exporters usually work with specialists who can handle international problems such as customs, taxes, exchange rates, and shipping.

Accepted Answer

A) True 
 B)False

Question 11

Intermediaries are needed LEAST when the desired degree of market exposure is:

Accepted Answer

A)  intensive. 
B)  ideal. 
C)  selective. 
D)  exclusive. 
E)  None of these choices is correct. 
A)  intensive. 
B)  ideal. 
C)  selective. 
D)  exclusive. 
E)  None of these choices is correct.

Question 12

Which of the following statements does not accurately characterize place decisions?

Accepted Answer

A)  Place decisions involve stocking the right quantities of products. 
B)  Place decisions involve identifying appropriate locations for products. 
C)  Place decisions must analyze when customers will want or need products. 
D)  Place decisions typically involve channel partners. 
E)  Place decisions are easier to change compared to price, promotion, and product decisions. 
A)  Place decisions involve stocking the right quantities of products. 
B)  Place decisions involve identifying appropriate locations for products. 
C)  Place decisions must analyze when customers will want or need products. 
D)  Place decisions typically involve channel partners. 
E)  Place decisions are easier to change compared to price, promotion, and product decisions.

Question 13

Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost. This is an example of _________ conflict.

Accepted Answer

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

Question 14

Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

Accepted Answer

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

Question 15

Aggressive, market-oriented intermediaries are almost always available and eager to handle the distribution of innovative, new products.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are regrouping activities EXCEPT

Accepted Answer

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

Question 17

The desirability of a common "product-market commitment" is based on the idea that:

Accepted Answer

A)  each member of the channel should focus on a different target market. 
B)  the whole channel is competing with other channel systems. 
C)  the producer should always be the "channel captain." 
D)  a channel can eliminate the marketing functions. 
E)  All of these ideas are relevant. 
A)  each member of the channel should focus on a different target market. 
B)  the whole channel is competing with other channel systems. 
C)  the producer should always be the "channel captain." 
D)  a channel can eliminate the marketing functions. 
E)  All of these ideas are relevant.

Question 18

Direct marketing is primarily concerned with Promotion, not Place.

Accepted Answer

A) True 
 B)False

Question 19

_____ 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

Question 20

Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution.

Accepted Answer

A) True 
 B)False

A firm acquiring another firm at a different level of activity within a channel of distribution is called:

A direct-to-customer channel

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

A channel of distribution is a series of firms or individuals participating in the flow of products from the producer to the consumer.

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

Legal concerns about channel of distribution arrangements are most likely to arise when:

Intensive distribution is

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:

A disadvantage of direct-to-customer channels is that they

Exporters usually work with specialists who can handle international problems such as customs, taxes, exchange rates, and shipping.

Intermediaries are needed LEAST when the desired degree of market exposure is:

Which of the following statements does not accurately characterize place decisions?

Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost. This is an example of _________ conflict.

Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

Aggressive, market-oriented intermediaries are almost always available and eager to handle the distribution of innovative, new products.

All of the following are regrouping activities EXCEPT

The desirability of a common "product-market commitment" is based on the idea that:

Direct marketing is primarily concerned with Promotion, not Place.

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

Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect 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

A firm acquiring another firm at a different level of activity within a channel of distribution is called:

A direct-to-customer channel

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

A channel of distribution is a series of firms or individuals participating in the flow of products from the producer to the consumer.

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

Legal concerns about channel of distribution arrangements are most likely to arise when:

Intensive distribution is

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:

A disadvantage of direct-to-customer channels is that they

Exporters usually work with specialists who can handle international problems such as customs, taxes, exchange rates, and shipping.

Intermediaries are needed LEAST when the desired degree of market exposure is:

Which of the following statements does not accurately characterize place decisions?

Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost. This is an example of _________ conflict.

Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

Aggressive, market-oriented intermediaries are almost always available and eager to handle the distribution of innovative, new products.

All of the following are regrouping activities EXCEPT

The desirability of a common "product-market commitment" is based on the idea that:

Direct marketing is primarily concerned with Promotion, not Place.

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

Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect 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