Exam 10: Place and Development of Channel Systems

A good "channel captain" knows that:

A wholesaler might help a producer by reducing the producer's need for market research.

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

Strategy "Place" decisions would NOT include:

Which of the following statements about Place is FALSE?

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Producers can positively manage channel conflict using all the following tactics except:

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

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

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

A convenience product would probably be sold using:

To reduce conflicts in channels, a firm should:

Which of the following is NOT an advantage of vertical integration?

Exclusive distribution is more likely to involve a more formal arrangement than is selective or intensive distribution.

In "traditional channel systems," the channel members:

Vertical marketing systems are growing in the U.S., but declining in the rest of the world.

Producers who consider handling the entire distribution job themselves may be especially inclined to do so because:

Business products tend to be sold direct to customers because compared to consumer products: