Question 1

When selecting the degree of market exposure for a firm's products, it's important to remember that:

Accepted Answer

A)  vertical arrangements between producers and intermediaries which limit sales by customer or territory are definitely illegal. 
B)  the Federal Trade Commission prohibits exclusive distribution. 
C)  vertical arrangements between producers and intermediaries which limit sales by customer or territory may be legal according to a recent Supreme Court ruling. 
D)  horizontal arrangements among competing producers or intermediaries which limit sales by customer or territory are generally considered legal. 
E)  None of these alternatives is correct. 
A)  vertical arrangements between producers and intermediaries which limit sales by customer or territory are definitely illegal. 
B)  the Federal Trade Commission prohibits exclusive distribution. 
C)  vertical arrangements between producers and intermediaries which limit sales by customer or territory may be legal according to a recent Supreme Court ruling. 
D)  horizontal arrangements among competing producers or intermediaries which limit sales by customer or territory are generally considered legal. 
E)  None of these alternatives is correct. C

Question 2

To reduce conflicts in channels, a firm should:

Accepted Answer

A)  Offer different products through each channel. 
B)  Provide some compensation to members of the older channel. 
C)  Treat channel partners fairly even when one partner is more powerful. 
D)  Focus on segments not currently served by existing channels. 
E)  All of these alternatives are correct. 
A)  Offer different products through each channel. 
B)  Provide some compensation to members of the older channel. 
C)  Treat channel partners fairly even when one partner is more powerful. 
D)  Focus on segments not currently served by existing channels. 
E)  All of these alternatives are correct. E

Question 3

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

Accepted Answer

A)  Concentrated distribution 
B)  Selective distribution 
C)  Administered distribution 
D)  Intensive distribution 
E)  Exclusive distribution 
A)  Concentrated distribution 
B)  Selective distribution 
C)  Administered distribution 
D)  Intensive distribution 
E)  Exclusive distribution B

Question 4

If Penn Hills Mfg. Corp. gives the Johnstown Distributing Co. the exclusive right to distribute Penn Hills' products in Ohio--with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio, this arrangement:

Accepted Answer

A)  WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal. 
B)  MAY OR MAY NOT BE LEGAL--the courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition. 
C)  WOULD DEFINITELY BE LEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are legal. 
D)  WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all horizontal arrangements between competitors are illegal. 
E)  WOULD DEFINITELY BE LEGAL because the courts have ruled that all horizontal arrangements between competitors are legal. 
A)  WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are illegal. 
B)  MAY OR MAY NOT BE LEGAL--the courts would weigh the possible good effects of this vertical arrangement against possible restrictions on competition. 
C)  WOULD DEFINITELY BE LEGAL because the courts have ruled that all vertical arrangements between producers and intermediaries are legal. 
D)  WOULD DEFINITELY BE ILLEGAL because the courts have ruled that all horizontal arrangements between competitors are illegal. 
E)  WOULD DEFINITELY BE LEGAL because the courts have ruled that all horizontal arrangements between competitors are legal.

Question 5

Aggressive, market-oriented intermediaries are almost always available and eager to handle the distribution of innovative, new products.

Accepted Answer

A) True 
 B)False

Question 6

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity?

Accepted Answer

A)  Accumulating 
B)  Bulk-breaking 
C)  Sorting 
D)  Assorting 
E)  None of these is a good answer 
A)  Accumulating 
B)  Bulk-breaking 
C)  Sorting 
D)  Assorting 
E)  None of these is a good answer

Question 7

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the easiest way for a firm to enter foreign markets?

Accepted Answer

A)  joint ventures 
B)  licensing 
C)  multinational bargaining 
D)  direct investment 
E)  management contracting 
A)  joint ventures 
B)  licensing 
C)  multinational bargaining 
D)  direct investment 
E)  management contracting

Question 9

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Accepted Answer

A)  assorting. 
B)  bulk-breaking. 
C)  wholesaling. 
D)  accumulating. 
E)  sorting. 
A)  assorting. 
B)  bulk-breaking. 
C)  wholesaling. 
D)  accumulating. 
E)  sorting.

Question 10

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

Accepted Answer

A) True 
 B)False

Question 11

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

Accepted Answer

A)  contractual 
B)  traditional 
C)  administered 
D)  integrated 
E)  corporate 
A)  contractual 
B)  traditional 
C)  administered 
D)  integrated 
E)  corporate

Question 12

"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 13

Distribution agreements which limit sales by customer or territory:

Accepted Answer

A)  are always illegal. 
B)  may be legal if they are horizontal agreements between producers and intermediaries. 
C)  are definitely illegal if they are horizontal agreements among competing producers or intermediaries, but may be legal if they are vertical agreements. 
D)  are definitely illegal if they are vertical agreements between producers and intermediaries. 
E)  None of these alternatives is correct. 
A)  are always illegal. 
B)  may be legal if they are horizontal agreements between producers and intermediaries. 
C)  are definitely illegal if they are horizontal agreements among competing producers or intermediaries, but may be legal if they are vertical agreements. 
D)  are definitely illegal if they are vertical agreements between producers and intermediaries. 
E)  None of these alternatives is correct.

Question 14

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

Accepted Answer

A) True 
 B)False

Question 17

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

Accepted Answer

A) True 
 B)False

Question 18

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manager

Accepted Answer

A)  should offer purchase discounts based on the quantity of mattresses that the retailer sells. 
B)  assume that all channel members have a common commitment to target consumers at the end of the channel. 
C)  trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer. 
D)  develop different brands or product lines for different channels. 
E)  expect one of the large retail chains to step up to the responsibilities of being the channel captain. 
A)  should offer purchase discounts based on the quantity of mattresses that the retailer sells. 
B)  assume that all channel members have a common commitment to target consumers at the end of the channel. 
C)  trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer. 
D)  develop different brands or product lines for different channels. 
E)  expect one of the large retail chains to step up to the responsibilities of being the channel captain.

Question 19

If a Universal computer monitor breaks while it is still under warranty, someone needs to get it to the repair center. In this case, Universal will need:

Accepted Answer

A)  reverse channels. 
B)  multichannels. 
C)  intensive distribution. 
D)  exclusive distribution. 
E)  selective distribution. 
A)  reverse channels. 
B)  multichannels. 
C)  intensive distribution. 
D)  exclusive distribution. 
E)  selective distribution.

Question 20

Because wholesalers and retailers are closer to the final user, they are in an ideal position to assume the channel captain role.

Accepted Answer

A) True 
 B)False

When selecting the degree of market exposure for a firm's products, it's important to remember that:

To reduce conflicts in channels, a firm should:

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

If Penn Hills Mfg. Corp. gives the Johnstown Distributing Co. the exclusive right to distribute Penn Hills' products in Ohio--with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio, this arrangement:

Aggressive, market-oriented intermediaries are almost always available and eager to handle the distribution of innovative, new products.

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity?

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Which of the following is the easiest way for a firm to enter foreign markets?

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

"Discrepancies of quantity" occur because

Distribution agreements which limit sales by customer or territory:

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

Exporting

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manager

If a Universal computer monitor breaks while it is still under warranty, someone needs to get it to the repair center. In this case, Universal will need:

Because wholesalers and retailers are closer to the final user, they are in an ideal position to assume the channel captain role.

Marketing39s 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

Promotion - Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

Filters

Exam 10: Place and Development of Channel Systems

When selecting the degree of market exposure for a firm's products, it's important to remember that:

To reduce conflicts in channels, a firm should:

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

If Penn Hills Mfg. Corp. gives the Johnstown Distributing Co. the exclusive right to distribute Penn Hills' products in Ohio--with the understanding that Johnstown can't sell Penn Hills' products outside Ohio or to other wholesalers in Ohio, this arrangement:

Aggressive, market-oriented intermediaries are almost always available and eager to handle the distribution of innovative, new products.

Retail stores that sell "seconds" and "irregular" products at discount prices are flourishing all over the country. These stores are needed because of what regrouping activity?

Discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities.

Which of the following is the easiest way for a firm to enter foreign markets?

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

Selective distribution is becoming more popular than intensive distribution as firms see that they do not need 100 percent coverage of a market to support national advertising.

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

"Discrepancies of quantity" occur because

Distribution agreements which limit sales by customer or territory:

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

Exporting

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

Discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy large quantities of a small assortment of products.

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manager

If a Universal computer monitor breaks while it is still under warranty, someone needs to get it to the repair center. In this case, Universal will need:

Because wholesalers and retailers are closer to the final user, they are in an ideal position to assume the channel captain role.

Marketing39s 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

Promotion - Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

Filters