Question 1

Which of the following products or services is most likely to be distributed through an indirect channel?

Accepted Answer

A)  Smartphones 
B)  Complex medical equipment 
C)  Tropical flowers 
D)  Computer systems 
A)  Smartphones 
B)  Complex medical equipment 
C)  Tropical flowers 
D)  Computer systems A

Question 2

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 D

Question 3

In framing the channel selection decision, which of the following considerations pertains to an intermediary's characteristic?

Accepted Answer

A)  Purchasing patterns of the intermediary 
B)  Financial condition of the intermediary 
C)  Political issues 
D)  Technological changes 
A)  Purchasing patterns of the intermediary 
B)  Financial condition of the intermediary 
C)  Political issues 
D)  Technological changes B

Question 4

Which of the following products is most likely to require a direct channel of distribution?

Accepted Answer

A)  Coal 
B)  Lighting fixtures 
C)  Tropical flowers 
D)  Wooden picture frames 
A)  Coal 
B)  Lighting fixtures 
C)  Tropical flowers 
D)  Wooden picture frames

Question 5

The dependence in administered vertical marketing systems can result from the existence of a strong:

Accepted Answer

A)  buyer preference. 
B)  corporate system. 
C)  channel leader. 
D)  distributor network. 
A)  buyer preference. 
B)  corporate system. 
C)  channel leader. 
D)  distributor network.

Question 6

Which of the following is true of franchises?

Accepted Answer

A)  They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way. 
B)  They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position. 
C)  They involve a wholesaler contracting with a number of retailers performing channel functions for it. 
D)  They involve a retailer assuming ownership of its primary manufacturer through the presence of a channel leader. 
A)  They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way. 
B)  They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position. 
C)  They involve a wholesaler contracting with a number of retailers performing channel functions for it. 
D)  They involve a retailer assuming ownership of its primary manufacturer through the presence of a channel leader.

Question 7

A manufacturer utilizing a selective 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 such that intermediaries are provided exclusive rights within a territory. 
D)  limits the use of intermediaries to the ones believed to be the best available in a 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 such that intermediaries are provided exclusive rights within a territory. 
D)  limits the use of intermediaries to the ones believed to be the best available in a geographic area.

Question 8

FemPlus, a manufacturer of cosmetics, shares expenditures incurred toward promotional activities like advertising with its intermediaries. Additionally, it provides them with operational aids such as a computer-aided inventory system. These measures by FemPlus primarily seek to:

Accepted Answer

A)  shorten its channel of distribution. 
B)  curtail distribution costs. 
C)  provide autonomy to the distributor in selling its products. 
D)  maintain a degree of control over its intermediaries. 
A)  shorten its channel of distribution. 
B)  curtail distribution costs. 
C)  provide autonomy to the distributor in selling its products. 
D)  maintain a degree of control over its intermediaries.

Question 9

Which of the following is true of administered vertical marketing systems?

Accepted Answer

A)  They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way. 
B)  They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position. 
C)  They involve a wholesaler contracting with a number of retailers performing channel functions for it. 
D)  They involve a high degree of interorganizational planning and management and depend on the presence of a channel leader. 
A)  They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way. 
B)  They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position. 
C)  They involve a wholesaler contracting with a number of retailers performing channel functions for it. 
D)  They involve a high degree of interorganizational planning and management and depend on the presence of a channel leader.

Question 10

Curexa, a popular health food store, obtains over fifty percent of the goods it sells in its retail stores from wholesalers that it partially or wholly owns. In this case, Curexa is participating in a _____ vertical marketing system.

Accepted Answer

A)  retail cooperative 
B)  contractual 
C)  selective wholesale 
D)  corporate 
A)  retail cooperative 
B)  contractual 
C)  selective wholesale 
D)  corporate

Question 11

Online retailing is disadvantageous for marketers because it often:

Accepted Answer

A)  squeezes profit margins due to strong price competition. 
B)  limits assortment of products to be offered. 
C)  prevents one-on-one relationships with customers. 
D)  leads to less shelf space as opposed to direct sales methods. 
A)  squeezes profit margins due to strong price competition. 
B)  limits assortment of products to be offered. 
C)  prevents one-on-one relationships with customers. 
D)  leads to less shelf space as opposed to direct sales methods.

Question 12

A shoe manufacturer sells high-end designer shoes to wholesalers who, in turn, sell a variety of shoes and other leather accessories to various retail outlets. Which of the following channels of distribution is the shoe manufacturer using?

Accepted Answer

A)  Matrix channel 
B)  Indirect channel 
C)  Peer-to-peer channel 
D)  Maker to user channel 
A)  Matrix channel 
B)  Indirect channel 
C)  Peer-to-peer channel 
D)  Maker to user channel

Question 13

The direct channel of distribution is often used in the distribution of organizational goods because:

Accepted Answer

A)  the structure of most organizational markets is characterized by relatively few customers. 
B)  the manufacturers lack economic power for hiring intermediaries. 
C)  most of the markets are geographically dispersed and heterogeneous. 
D)  many organizational products need a great deal of presale and postsale services. 
A)  the structure of most organizational markets is characterized by relatively few customers. 
B)  the manufacturers lack economic power for hiring intermediaries. 
C)  most of the markets are geographically dispersed and heterogeneous. 
D)  many organizational products need a great deal of presale and postsale services.

Question 14

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 15

Firms may choose to develop corporate vertical marketing systems in order to:

Accepted Answer

A)  obtain scale economies. 
B)  acquire location convenience. 
C)  concentrate sales in category killer chains. 
D)  decrease diversification costs. 
A)  obtain scale economies. 
B)  acquire location convenience. 
C)  concentrate sales in category killer chains. 
D)  decrease diversification costs.

Question 16

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 17

_____ retailing is the fastest-growing method of retailing.

Accepted Answer

A)  Direct 
B)  Limited-line 
C)  System 
D)  Online 
A)  Direct 
B)  Limited-line 
C)  System 
D)  Online

Question 18

Which of the following is true of brokers?

Accepted Answer

A)  They typically assume title risks to a product. 
B)  They usually have physical custody of products. 
C)  They are looked upon as permanent representatives of both buyers and sellers. 
D)  They serve as go-betweens for a buyer or a seller. 
A)  They typically assume title risks to a product. 
B)  They usually have physical custody of products. 
C)  They are looked upon as permanent representatives of both buyers and sellers. 
D)  They serve as go-betweens for a buyer or a seller.

Question 19

A contractual vertical marketing system is exemplified by:

Accepted Answer

A)  a florist shop that buys from a wholesale plant nursery. 
B)  a coffee producer who owns a chain of coffee shops. 
C)  the relationship of a popular grocery chain of stores with its suppliers. 
D)  the franchise system of a reputed sandwich brand. 
A)  a florist shop that buys from a wholesale plant nursery. 
B)  a coffee producer who owns a chain of coffee shops. 
C)  the relationship of a popular grocery chain of stores with its suppliers. 
D)  the franchise system of a reputed sandwich brand.

Question 20

Which of the following dominates nonstore retailing?

Accepted Answer

A)  Catalogs and direct mail 
B)  Vending machines 
C)  Direct sales 
D)  Electronic exchanges 
A)  Catalogs and direct mail 
B)  Vending machines 
C)  Direct sales 
D)  Electronic exchanges

Which of the following products or services is most likely to be distributed through an indirect channel?

In framing the channel selection decision, which of the following considerations pertains to an intermediary's characteristic?

Which of the following products is most likely to require a direct channel of distribution?

The dependence in administered vertical marketing systems can result from the existence of a strong:

Which of the following is true of franchises?

A manufacturer utilizing a selective form of distribution coverage:

FemPlus, a manufacturer of cosmetics, shares expenditures incurred toward promotional activities like advertising with its intermediaries. Additionally, it provides them with operational aids such as a computer-aided inventory system. These measures by FemPlus primarily seek to:

Which of the following is true of administered vertical marketing systems?

Curexa, a popular health food store, obtains over fifty percent of the goods it sells in its retail stores from wholesalers that it partially or wholly owns. In this case, Curexa is participating in a _____ vertical marketing system.

Online retailing is disadvantageous for marketers because it often:

A shoe manufacturer sells high-end designer shoes to wholesalers who, in turn, sell a variety of shoes and other leather accessories to various retail outlets. Which of the following channels of distribution is the shoe manufacturer using?

The direct channel of distribution is often used in the distribution of organizational goods because:

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

Firms may choose to develop corporate vertical marketing systems in order to:

Online retailing provides an advantage for marketers by:

_____ retailing is the fastest-growing method of retailing.

Which of the following is true of brokers?

A contractual vertical marketing system is exemplified by:

Which of the following dominates nonstore retailing?

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

Which of the following products or services is most likely to be distributed through an indirect channel?

In framing the channel selection decision, which of the following considerations pertains to an intermediary's characteristic?

Which of the following products is most likely to require a direct channel of distribution?

The dependence in administered vertical marketing systems can result from the existence of a strong:

Which of the following is true of franchises?

A manufacturer utilizing a selective form of distribution coverage:

FemPlus, a manufacturer of cosmetics, shares expenditures incurred toward promotional activities like advertising with its intermediaries. Additionally, it provides them with operational aids such as a computer-aided inventory system. These measures by FemPlus primarily seek to:

Which of the following is true of administered vertical marketing systems?

Curexa, a popular health food store, obtains over fifty percent of the goods it sells in its retail stores from wholesalers that it partially or wholly owns. In this case, Curexa is participating in a _____ vertical marketing system.

Online retailing is disadvantageous for marketers because it often:

A shoe manufacturer sells high-end designer shoes to wholesalers who, in turn, sell a variety of shoes and other leather accessories to various retail outlets. Which of the following channels of distribution is the shoe manufacturer using?

The direct channel of distribution is often used in the distribution of organizational goods because:

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

Firms may choose to develop corporate vertical marketing systems in order to:

Online retailing provides an advantage for marketers by:

_____ retailing is the fastest-growing method of retailing.

Which of the following is true of brokers?

A contractual vertical marketing system is exemplified by:

Which of the following dominates nonstore retailing?

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