Question 1

One of the limitations of franchising is that it:

Accepted Answer

A) provides less opportunities for additional profits through supplies sold to franchisees. 
B) depends heavily on franchisees for financial success without full control of them. 
C) requires many company managers and employees,thus increasing costs. 
D) prevents expansion requiring more capital,resulting in slower market penetration. 
A) provides less opportunities for additional profits through supplies sold to franchisees. 
B) depends heavily on franchisees for financial success without full control of them. 
C) requires many company managers and employees,thus increasing costs. 
D) prevents expansion requiring more capital,resulting in slower market penetration.

Question 2

_____ is the purchase by wholesalers or retailers of channel members above them.

Accepted Answer

A) Backward integration 
B) Contractual marketing 
C) Parallel ownership 
D) Franchising system 
A) Backward integration 
B) Contractual marketing 
C) Parallel ownership 
D) Franchising system

Question 3

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?

Accepted Answer

A) Focused distribution 
B) Intensive distribution 
C) Exclusive distribution 
D) Selective distribution 
A) Focused distribution 
B) Intensive distribution 
C) Exclusive distribution 
D) Selective distribution

Question 4

Which of the following is true of mass merchandisers?

Accepted Answer

A) They handle deep assortments in a limited number of product categories. 
B) They compete on the basis of providing variety in different product categories and low-priced products in their large assortments. 
C) They are retailers whose primary advantages to consumers are suitable location,close-in parking,and easy entry and exit. 
D) They are large,low-priced limited-line retail chains that attempt to capitalize and establish themselves in a single product category. 
A) They handle deep assortments in a limited number of product categories. 
B) They compete on the basis of providing variety in different product categories and low-priced products in their large assortments. 
C) They are retailers whose primary advantages to consumers are suitable location,close-in parking,and easy entry and exit. 
D) They are large,low-priced limited-line retail chains that attempt to capitalize and establish themselves in a single product category.

Question 5

Anchor Inc.is a retailer that acts as an intermediary for buyers and sellers.As a marketing intermediary,it serves several functions that include buying,selling,and assuming title risks for a manufacturer's products.Apart from them,it has to serve the function of facilitating a purchase order.In order to do so,which of the following should the company do?

Accepted Answer

A) Inspect,test,and judge products to assign them a quality grade. 
B) Create product assortments from several sources to serve customers. 
C) Physically move products to customers. 
D) Assemble products at a convenient location to offer better customer service. 
A) Inspect,test,and judge products to assign them a quality grade. 
B) Create product assortments from several sources to serve customers. 
C) Physically move products to customers. 
D) Assemble products at a convenient location to offer better customer service.

Question 6

In the context of marketing intermediaries,a(n)_____ is defined as a business unit that negotiates purchases,sales,or both but does not take title to the goods in which it deals.

Accepted Answer

A) middleman 
B) agent 
C) initiator 
D) wholesaler 
A) middleman 
B) agent 
C) initiator 
D) wholesaler

Question 7

Which of the following is true of catalogs and direct mail?

Accepted Answer

A) They serve to increase overhead costs. 
B) They facilitate in-depth descriptions of specialty merchandise goods. 
C) They are considered ineffective channels for targeting unique markets that are geographically dispersed. 
D) They offer better visual display of products than television home shopping. 
A) They serve to increase overhead costs. 
B) They facilitate in-depth descriptions of specialty merchandise goods. 
C) They are considered ineffective channels for targeting unique markets that are geographically dispersed. 
D) They offer better visual display of products than television home shopping.

Question 8

Which of the following is true of the direct sales method of retailing?

Accepted Answer

A) It is ineffective in providing detailed information about a product. 
B) It is not suited for marketing products like home appliances and kitchenware. 
C) It is quite expensive,and consumers do not want to pay the higher prices needed to cover the high costs of this method of retailing. 
D) It is the fastest-growing type of retailing and is an alternative to the setting up of virtual stores that incur more costs. 
A) It is ineffective in providing detailed information about a product. 
B) It is not suited for marketing products like home appliances and kitchenware. 
C) It is quite expensive,and consumers do not want to pay the higher prices needed to cover the high costs of this method of retailing. 
D) It is the fastest-growing type of retailing and is an alternative to the setting up of virtual stores that incur more costs.

Question 9

Which of the following is an example of a direct channel of distribution?

Accepted Answer

A) Wholesaling 
B) Catalog selling 
C) Agent selling 
D) Retailing 
A) Wholesaling 
B) Catalog selling 
C) Agent selling 
D) Retailing

Question 10

In the context of channels of distribution,_____ are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

Accepted Answer

A) facilitators 
B) distributors 
C) agents 
D) jobbers 
A) facilitators 
B) distributors 
C) agents 
D) jobbers

Question 11

A manufacturer utilizing an exclusive form of distribution coverage:

Accepted Answer

A) manufactures products that are characterized by low unit value and high frequency of purchase. 
B) attempts to gain exposure through as many wholesalers and retailers as possible. 
C) severely limits distribution,and intermediaries are provided exclusive rights within a particular territory. 
D) limits the use of intermediaries to the ones believed to be the best available in the geographic area. 
A) manufactures products that are characterized by low unit value and high frequency of purchase. 
B) attempts to gain exposure through as many wholesalers and retailers as possible. 
C) severely limits distribution,and intermediaries are provided exclusive rights within a particular territory. 
D) limits the use of intermediaries to the ones believed to be the best available in the geographic area.

Question 12

A retail cooperative organization,a wholesaler-sponsored voluntary chain,and various franchising programs are the three major types of _____ vertical marketing systems.

Accepted Answer

A) administered 
B) contractual 
C) structured 
D) corporate 
A) administered 
B) contractual 
C) structured 
D) corporate

Question 13

_____ is a manufacturer's purchase of wholesalers or retailers who distribute its products.

Accepted Answer

A) Forward integration 
B) Contractual marketing 
C) A manufacturer-sponsored voluntary chain 
D) A franchising program 
A) Forward integration 
B) Contractual marketing 
C) A manufacturer-sponsored voluntary chain 
D) A franchising program

Question 14

A manufacturer utilizing an intensive form of distribution coverage:

Accepted Answer

A) usually produces products that require certain specialized selling effort or investment in unique facilities. 
B) manufactures products that are characterized by a low unit value and a high frequency of purchase. 
C) severely limits distribution and provides intermediaries with exclusive rights within a territory. 
D) limits the use of intermediaries to the ones believed to be the best available in the geographic area. 
A) usually produces products that require certain specialized selling effort or investment in unique facilities. 
B) manufactures products that are characterized by a low unit value and a high frequency of purchase. 
C) severely limits distribution and provides intermediaries with exclusive rights within a territory. 
D) limits the use of intermediaries to the ones believed to be the best available in the geographic area.

Question 15

Online retailing provides an advantage for marketers by:

Accepted Answer

A) being very effective in business-to-consumer markets than in business-to-business markets. 
B) being extremely cost-efficient by reducing the need for paper catalogs. 
C) providing high entry barriers,leading e-marketers to overemphasize order-taking. 
D) expanding the markets to people who are willing and able to purchase electronically. 
A) being very effective in business-to-consumer markets than in business-to-business markets. 
B) being extremely cost-efficient by reducing the need for paper catalogs. 
C) providing high entry barriers,leading e-marketers to overemphasize order-taking. 
D) expanding the markets to people who are willing and able to purchase electronically.

Question 16

_____ manufacturers are most likely to use intensive distribution.

Accepted Answer

A) Personal computer 
B) Laser printer 
C) Home furnishings 
D) Soda 
A) Personal computer 
B) Laser printer 
C) Home furnishings 
D) Soda

Question 17

GreenFizz,a popular beverage manufacturer,licenses wholesalers in various markets to buy its syrup concentrate.These wholesalers are then allowed to process it further by carbonating and packaging GreenFizz's products to sell to retailers in their local markets.In this case,GreenFizz is participating in a(n)_____ vertical marketing system.

Accepted Answer

A) selective 
B) administered 
C) corporate 
D) contractual 
A) selective 
B) administered 
C) corporate 
D) contractual

Question 18

A _____ is the combination of institutions through which a seller markets products to organizational buyers or ultimate consumers.

Accepted Answer

A) marketing node 
B) channel of distribution 
C) sales consortium 
D) logistics conduit 
A) marketing node 
B) channel of distribution 
C) sales consortium 
D) logistics conduit

Question 19

Which of the following is an example of forward integration in a corporate vertical marketing system?

Accepted Answer

A) A car manufacturer acquiring a retail showroom 
B) A car dealer achieving a direct channel of distribution without ownership 
C) A grocery wholesaler buying a sugar manufacturer 
D) A laptop distributor buying a computer chip maker 
A) A car manufacturer acquiring a retail showroom 
B) A car dealer achieving a direct channel of distribution without ownership 
C) A grocery wholesaler buying a sugar manufacturer 
D) A laptop distributor buying a computer chip maker

Question 20

In the context of channels of distribution,_____ are used in organizational markets when there is a large number of buyers but each purchases a small amount of a product.

Accepted Answer

A) wholesalers 
B) distributors 
C) agents 
D) retailers 
A) wholesalers 
B) distributors 
C) agents 
D) retailers

One of the limitations of franchising is that it:

_____ is the purchase by wholesalers or retailers of channel members above them.

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?

Which of the following is true of mass merchandisers?

In the context of marketing intermediaries,a(n)_____ is defined as a business unit that negotiates purchases,sales,or both but does not take title to the goods in which it deals.

Which of the following is true of catalogs and direct mail?

Which of the following is true of the direct sales method of retailing?

Which of the following is an example of a direct channel of distribution?

In the context of channels of distribution,_____ are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

A manufacturer utilizing an exclusive form of distribution coverage:

A retail cooperative organization,a wholesaler-sponsored voluntary chain,and various franchising programs are the three major types of _____ vertical marketing systems.

_____ is a manufacturer's purchase of wholesalers or retailers who distribute its products.

A manufacturer utilizing an intensive form of distribution coverage:

Online retailing provides an advantage for marketers by:

_____ manufacturers are most likely to use intensive distribution.

A _____ is the combination of institutions through which a seller markets products to organizational buyers or ultimate consumers.

Which of the following is an example of forward integration in a corporate vertical marketing system?

In the context of channels of distribution,_____ are used in organizational markets when there is a large number of buyers but each purchases a small amount of a product.

Strategic Planning and the Marketing Management Process

Marketing Research: Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

New Product Planning and Development

Integrated Marketing Communications

Personal Selling, Relationship Building, and Sales Management

Pricing Strategy

The Marketing of Services

Global Marketing

Portfolio Models

Filters

Exam 10: Distribution Strategy

One of the limitations of franchising is that it:

_____ is the purchase by wholesalers or retailers of channel members above them.

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible?

Which of the following is true of mass merchandisers?

In the context of marketing intermediaries,a(n)_____ is defined as a business unit that negotiates purchases,sales,or both but does not take title to the goods in which it deals.

Which of the following is true of catalogs and direct mail?

Which of the following is true of the direct sales method of retailing?

Which of the following is an example of a direct channel of distribution?

In the context of channels of distribution,_____ are used in organizational markets in cases where manufacturers do not wish to have their own sales forces.

A manufacturer utilizing an exclusive form of distribution coverage:

A retail cooperative organization,a wholesaler-sponsored voluntary chain,and various franchising programs are the three major types of _____ vertical marketing systems.

_____ is a manufacturer's purchase of wholesalers or retailers who distribute its products.

A manufacturer utilizing an intensive form of distribution coverage:

Online retailing provides an advantage for marketers by:

_____ manufacturers are most likely to use intensive distribution.

A _____ is the combination of institutions through which a seller markets products to organizational buyers or ultimate consumers.

Which of the following is an example of forward integration in a corporate vertical marketing system?

In the context of channels of distribution,_____ are used in organizational markets when there is a large number of buyers but each purchases a small amount of a product.

Strategic Planning and the Marketing Management Process

Marketing Research: Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

New Product Planning and Development

Integrated Marketing Communications

Personal Selling, Relationship Building, and Sales Management

Pricing Strategy

The Marketing of Services

Global Marketing

Portfolio Models

Filters