Exam 10: Place and Development of Channel Systems

Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and other special-purpose cutlery. Ravi makes sales presentations to potential customers in their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier and sells them to the customer at a markup. For example, Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi:

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

When Fresh Produce Wholesaler Inc. buys fruit and vegetables from a variety of different farmers and takes large bushels and breaks them into smaller package sizes, Fresh Produce is addressing

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

Management contracting is a relatively low risk way of entering foreign markets, since no commitment is made to fixed facilities.

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

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

"Selective distribution" means selling through:

Since music, movies, books, and TV programs now exist in digital form, such products:

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity?

Exporting is often the first step into international marketing.

When selecting the degree of market exposure for a firm's products, it's important to remember that:

Accumulating involves collecting products from many small producers-often as a way to get lower transportation rates.

Reverse channels are used when multichannel distribution fails.

Vertical agreements to limit sales by customer or territory are always illegal, while horizontal agreements may be legal sometimes.

A good reason for developing or joining a vertical marketing system

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Some channel conflict may

Which of the following statements about ideal market exposure is true?