Question 1

The need for reverse channels may arise in all of the following situations EXCEPT

Accepted Answer

A)  a consumer buys something in error and wants to return it. 
B)  a firm makes an error in completing an order. 
C)  a product is recalled for safety reasons. 
D)  a consumer changes her mind after purchasing a product. 
E)  All of these create a need for reverse channels. 
A)  a consumer buys something in error and wants to return it. 
B)  a firm makes an error in completing an order. 
C)  a product is recalled for safety reasons. 
D)  a consumer changes her mind after purchasing a product. 
E)  All of these create a need for reverse channels.

Question 2

Exporting

Accepted Answer

A)  is selling some of what the firm produces to foreign markets. 
B)  can be a way to get rid of surplus output. 
C)  can come from a real effort to look for new opportunities. 
D)  All of these alternatives are correct. 
A)  is selling some of what the firm produces to foreign markets. 
B)  can be a way to get rid of surplus output. 
C)  can come from a real effort to look for new opportunities. 
D)  All of these alternatives are correct.

Question 3

The owners of all the Chrysler auto dealerships in a large metropolitan area have an informal meeting during a golf outing. During the meeting, they agree to limit their orders of a new model of automobile that has received excellent reviews from the trade press for its styling and handling characteristics. Restricting orders will permit the dealers to sell these models at a price that will be at or above the manufacturer's suggested retail price for the vehicle. As a result, the dealers will make more profit on each vehicle sold due to the high demand for the new model. This type of agreement would be viewed by the courts as:

Accepted Answer

A)  Horizontal collusion that is illegal. 
B)  Horizontal collusion that is legal. 
C)  Vertical collusion that is legal. 
D)  Vertical collusion that is illegal. 
E)  An exclusive distribution arrangement that is legal. 
A)  Horizontal collusion that is illegal. 
B)  Horizontal collusion that is legal. 
C)  Vertical collusion that is legal. 
D)  Vertical collusion that is illegal. 
E)  An exclusive distribution arrangement that is legal.

Question 4

Traditional channels of distribution

Accepted Answer

A)  do not perform bulk-breaking activities. 
B)  are usually preferred to other distribution arrangements. 
C)  are easier to control than corporate channel systems. 
D)  may involve little or no cooperation among channel members. 
E)  are usually controlled through strong legal contracts. 
A)  do not perform bulk-breaking activities. 
B)  are usually preferred to other distribution arrangements. 
C)  are easier to control than corporate channel systems. 
D)  may involve little or no cooperation among channel members. 
E)  are usually controlled through strong legal contracts.

Question 5

Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

Accepted Answer

A) True 
 B)False

Question 6

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Accepted Answer

A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal 
A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal

Question 7

Intensive distribution:

Accepted Answer

A)  gives a retailer more incentive to promote a product than he would have with exclusive distribution. 
B)  is not very likely to be used in combination with multichannel distribution. 
C)  is more likely to be used with relatively high priced products than with low priced products. 
D)  is often used for convenience products and business supplies. 
E)  None of these alternatives is correct. 
A)  gives a retailer more incentive to promote a product than he would have with exclusive distribution. 
B)  is not very likely to be used in combination with multichannel distribution. 
C)  is more likely to be used with relatively high priced products than with low priced products. 
D)  is often used for convenience products and business supplies. 
E)  None of these alternatives is correct.

Question 8

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ___________ distribution.

Accepted Answer

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

Question 9

Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

Accepted Answer

A) True 
 B)False

Question 10

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

Accepted Answer

A)  marketing 
B)  selling 
C)  distribution 
D)  servicing 
E)  pricing 
A)  marketing 
B)  selling 
C)  distribution 
D)  servicing 
E)  pricing

Question 11

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

Accepted Answer

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

Question 12

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

Accepted Answer

A) True 
 B)False

Question 13

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements-or contracts between channel members-to cooperate.

Accepted Answer

A) True 
 B)False

Question 14

"Discrepancies of quantity" occur because

Accepted Answer

A)  producers seek economies of scale. 
B)  most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. 
C)  adding intermediaries in a channel of distribution increases the cost of getting products to consumers. 
D)  consumers want the convenience of buying many different types of products at one time. 
E)  All of these reasons are correct. 
A)  producers seek economies of scale. 
B)  most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. 
C)  adding intermediaries in a channel of distribution increases the cost of getting products to consumers. 
D)  consumers want the convenience of buying many different types of products at one time. 
E)  All of these reasons are correct.

Question 15

______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.

Accepted Answer

A)  Licensing 
B)  Management contracting 
C)  Direct investment 
D)  Joint venturing 
E)  Exporting 
A)  Licensing 
B)  Management contracting 
C)  Direct investment 
D)  Joint venturing 
E)  Exporting

Question 16

"Discrepancies of quantity" means:

Accepted Answer

A)  there are more producers than consumers. 
B)  there are more consumers than producers. 
C)  the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users. 
D)  consumers want more products than producers can make. 
E)  the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users. 
A)  there are more producers than consumers. 
B)  there are more consumers than producers. 
C)  the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users. 
D)  consumers want more products than producers can make. 
E)  the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.

Question 17

A joint venture is:

Accepted Answer

A)  a firm that provides only management skills, while others own the production and distribution facilities. 
B)  a firm selling the right to use some process, trademark, or other right for a fee. 
C)  a separate firm owned by a parent company. 
D)  a domestic firm entering into a partnership with a foreign firm. 
E)  a firm getting rid of surplus inventory. 
A)  a firm that provides only management skills, while others own the production and distribution facilities. 
B)  a firm selling the right to use some process, trademark, or other right for a fee. 
C)  a separate firm owned by a parent company. 
D)  a domestic firm entering into a partnership with a foreign firm. 
E)  a firm getting rid of surplus inventory.

Question 18

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Accepted Answer

A) True 
 B)False

Question 19

Reverse channels may be used to retrieve products from:

Accepted Answer

A)  business customers. 
B)  intermediaries. 
C)  business customers and intermediaries. 
D)  final consumers. 
E)  All of these. 
A)  business customers. 
B)  intermediaries. 
C)  business customers and intermediaries. 
D)  final consumers. 
E)  All of these.

Question 20

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of:

Accepted Answer

A)  a tying contract. 
B)  an administered channel system. 
C)  internal expansion. 
D)  vertical integration. 
E)  horizontal integration. 
A)  a tying contract. 
B)  an administered channel system. 
C)  internal expansion. 
D)  vertical integration. 
E)  horizontal integration.

The need for reverse channels may arise in all of the following situations EXCEPT

Exporting

Traditional channels of distribution

Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Intensive distribution:

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ___________ distribution.

Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements-or contracts between channel members-to cooperate.

"Discrepancies of quantity" occur because

______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.

"Discrepancies of quantity" means:

A joint venture is:

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Reverse channels may be used to retrieve products from:

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of:

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 need for reverse channels may arise in all of the following situations EXCEPT

Exporting

Traditional channels of distribution

Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Intensive distribution:

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ___________ distribution.

Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

Administered and contractual channel systems are vertical marketing systems which depend on informal agreements-or contracts between channel members-to cooperate.

"Discrepancies of quantity" occur because

______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.

"Discrepancies of quantity" means:

A joint venture is:

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Reverse channels may be used to retrieve products from:

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of:

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