Question 1

Soliciting orders and assuming business risks pertain to the _____ functions of a marketing intermediary.

Accepted Answer

A)  logistical 
B)  facilitating 
C)  transactional 
D)  grading 
A)  logistical 
B)  facilitating 
C)  transactional 
D)  grading

Question 2

In which of the following types of contractual vertical marketing systems does a group of independent retailers unite and agree to pool buying and managerial resources to improve competitive position?

Accepted Answer

A)  Retail cooperative organizations 
B)  Wholesaler-sponsored voluntary chains 
C)  Retail franchising programs 
D)  Wholesaler corporate channel programs 
A)  Retail cooperative organizations 
B)  Wholesaler-sponsored voluntary chains 
C)  Retail franchising programs 
D)  Wholesaler corporate channel programs

Question 3

Which of the following distribution costs is categorized as an inventory carrying cost?

Accepted Answer

A)  Cost of lost business 
B)  Insurance 
C)  Packaging 
D)  Materials handling 
A)  Cost of lost business 
B)  Insurance 
C)  Packaging 
D)  Materials handling

Question 4

In which of the following stores is a narrow but very deep product assortment found?

Accepted Answer

A)  A hypermarket 
B)  A category killer 
C)  A mass merchandiser 
D)  A convenience store 
A)  A hypermarket 
B)  A category killer 
C)  A mass merchandiser 
D)  A convenience store

Question 5

Which of the following best describes category killers?

Accepted Answer

A)  They are small retailers who handle deep assortments in a limited number of product categories. 
B)  They are single-line stores that emphasize a single product and effectively market it. 
C)  They are off-price retailers who compete more on the basis of offering large assortments at lower prices. 
D)  They are large, low-priced limited-line retail chains that attempt to dominate a particular product category. 
A)  They are small retailers who handle deep assortments in a limited number of product categories. 
B)  They are single-line stores that emphasize a single product and effectively market it. 
C)  They are off-price retailers who compete more on the basis of offering large assortments at lower prices. 
D)  They are large, low-priced limited-line retail chains that attempt to dominate a particular product category.

Question 6

Which of the following best describes a merchant middleman?

Accepted Answer

A)  A middleman who buys goods outright and takes title to them 
B)  A middleman who serves as a go-between for a buyer or seller without assuming title risks 
C)  A middleman who buys from manufacturers and sells to retailers 
D)  A middleman who possesses limited authority with regard to terms of sale 
A)  A middleman who buys goods outright and takes title to them 
B)  A middleman who serves as a go-between for a buyer or seller without assuming title risks 
C)  A middleman who buys from manufacturers and sells to retailers 
D)  A middleman who possesses limited authority with regard to terms of sale

Question 7

A small company that wants to get into a market and compete for business with less capital can use online retailing to its advantage because it offers:

Accepted Answer

A)  high brand equity for small companies. 
B)  less competition from established companies. 
C)  low-entry barriers. 
D)  high-investment capital. 
A)  high brand equity for small companies. 
B)  less competition from established companies. 
C)  low-entry barriers. 
D)  high-investment capital.

Question 8

Which of the following is true of a corporate vertical marketing system?

Accepted Answer

A)  It unites independent retailers for the purposes of pool buying to improve their competitive position. 
B)  It has a strong channel leader at or near the end of the channel. 
C)  It is exemplified by the franchise system of a popular apparel store. 
D)  It involves a manufacturer's single ownership of two or more levels of a channel. 
A)  It unites independent retailers for the purposes of pool buying to improve their competitive position. 
B)  It has a strong channel leader at or near the end of the channel. 
C)  It is exemplified by the franchise system of a popular apparel store. 
D)  It involves a manufacturer's single ownership of two or more levels of a channel.

Question 9

Which of the following is a benefit of wholesalers for end users?

Accepted Answer

A)  They reduce retail prices by the efficiency and effectiveness contributed to the channel. 
B)  They reduce potential losses by assuming risks and offering expertise. 
C)  They provide the ability to reach diverse geographic markets cost effectively. 
D)  They provide potentially profitable products otherwise unavailable for resale in retail area. 
A)  They reduce retail prices by the efficiency and effectiveness contributed to the channel. 
B)  They reduce potential losses by assuming risks and offering expertise. 
C)  They provide the ability to reach diverse geographic markets cost effectively. 
D)  They provide potentially profitable products otherwise unavailable for resale in retail area.

Question 10

Backward integration is typically evident when a:

Accepted Answer

A)  manufacturer purchases wholesalers. 
B)  wholesaler purchases channel members above it. 
C)  producer purchases distributors below it. 
D)  manufacturer holds ownership of retailers. 
A)  manufacturer purchases wholesalers. 
B)  wholesaler purchases channel members above it. 
C)  producer purchases distributors below it. 
D)  manufacturer holds ownership of retailers.

Question 11

An independent designer sells his exclusive collection of premium sportswear for men and women at specialty stores and select departmental stores nationwide. He considers his products as being characterized by high unit value and limited frequency of purchase. Before choosing his intermediaries, he checks to ensure that they have a good reputation in the market. Which of the following methods of distribution is the designer most likely utilizing?

Accepted Answer

A)  Selective 
B)  Restrictive 
C)  Intensive 
D)  Extensive 
A)  Selective 
B)  Restrictive 
C)  Intensive 
D)  Extensive

Question 12

A corporate 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 one of his regular retailers. 
C)  the relationship of an independent retail giant with its suppliers. 
D)  the franchise system of a popular apparel store. 
A)  a florist shop that buys from a wholesale plant nursery. 
B)  a coffee producer who owns one of his regular retailers. 
C)  the relationship of an independent retail giant with its suppliers. 
D)  the franchise system of a popular apparel store.

Question 13

Which of the following is true of wholesaler-sponsored voluntary chains?

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 14

_____ typically compete with other retailers on the basis of offering lower prices on products in their large assortments.

Accepted Answer

A)  Warehouse clubs 
B)  Convenience stores 
C)  Department stores 
D)  Supermarkets 
A)  Warehouse clubs 
B)  Convenience stores 
C)  Department stores 
D)  Supermarkets

Question 15

Which of the following products is most likely to be distributed through direct channels?

Accepted Answer

A)  Smartphones 
B)  Staplers 
C)  Hair dryers 
D)  Computer systems 
A)  Smartphones 
B)  Staplers 
C)  Hair dryers 
D)  Computer systems

Question 16

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 17

Most convenience goods require a(n) _____ form of distribution.

Accepted Answer

A)  focused 
B)  intensive 
C)  exclusive 
D)  selective 
A)  focused 
B)  intensive 
C)  exclusive 
D)  selective

Question 18

Which of the following is an example of forward integration in 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 19

The primary role of all marketing intermediaries is to:

Accepted Answer

A)  bring supply and demand together in an efficient and orderly fashion. 
B)  create timely demand for products that a manufacturer produces. 
C)  produce goods and services efficiently to meet the demands of customers. 
D)  prevent customers from making poor buying decisions. 
A)  bring supply and demand together in an efficient and orderly fashion. 
B)  create timely demand for products that a manufacturer produces. 
C)  produce goods and services efficiently to meet the demands of customers. 
D)  prevent customers from making poor buying decisions.

Question 20

_____ involves offering products and services in many channels such as in stores, in catalogs, and online.

Accepted Answer

A)  Multichannel marketing 
B)  Multi-level marketing 
C)  Vertical channel system 
D)  Network channelization 
A)  Multichannel marketing 
B)  Multi-level marketing 
C)  Vertical channel system 
D)  Network channelization

Soliciting orders and assuming business risks pertain to the _____ functions of a marketing intermediary.

In which of the following types of contractual vertical marketing systems does a group of independent retailers unite and agree to pool buying and managerial resources to improve competitive position?

Which of the following distribution costs is categorized as an inventory carrying cost?

In which of the following stores is a narrow but very deep product assortment found?

Which of the following best describes category killers?

Which of the following best describes a merchant middleman?

A small company that wants to get into a market and compete for business with less capital can use online retailing to its advantage because it offers:

Which of the following is true of a corporate vertical marketing system?

Which of the following is a benefit of wholesalers for end users?

Backward integration is typically evident when a:

A corporate vertical marketing system is exemplified by:

Which of the following is true of wholesaler-sponsored voluntary chains?

_____ typically compete with other retailers on the basis of offering lower prices on products in their large assortments.

Which of the following products is most likely to be distributed through direct channels?

One of the limitations of franchising is that it:

Most convenience goods require a(n) _____ form of distribution.

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

The primary role of all marketing intermediaries is to:

_____ involves offering products and services in many channels such as in stores, in catalogs, and online.

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

Soliciting orders and assuming business risks pertain to the _____ functions of a marketing intermediary.

In which of the following types of contractual vertical marketing systems does a group of independent retailers unite and agree to pool buying and managerial resources to improve competitive position?

Which of the following distribution costs is categorized as an inventory carrying cost?

In which of the following stores is a narrow but very deep product assortment found?

Which of the following best describes category killers?

Which of the following best describes a merchant middleman?

A small company that wants to get into a market and compete for business with less capital can use online retailing to its advantage because it offers:

Which of the following is true of a corporate vertical marketing system?

Which of the following is a benefit of wholesalers for end users?

Backward integration is typically evident when a:

A corporate vertical marketing system is exemplified by:

Which of the following is true of wholesaler-sponsored voluntary chains?

_____ typically compete with other retailers on the basis of offering lower prices on products in their large assortments.

Which of the following products is most likely to be distributed through direct channels?

One of the limitations of franchising is that it:

Most convenience goods require a(n) _____ form of distribution.

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

The primary role of all marketing intermediaries is to:

_____ involves offering products and services in many channels such as in stores, in catalogs, and online.

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