Question 1

A joint venture is:

Accepted Answer

A)  a firm that provides only management skills, while others own the production and distribution facilities. 
B)  a firm selling the right to use some process, trademark, or other right for a fee. 
C)  a separate firm owned by a parent company. 
D)  a domestic firm entering into a partnership with a foreign firm. 
E)  a firm getting rid of surplus inventory. 
A)  a firm that provides only management skills, while others own the production and distribution facilities. 
B)  a firm selling the right to use some process, trademark, or other right for a fee. 
C)  a separate firm owned by a parent company. 
D)  a domestic firm entering into a partnership with a foreign firm. 
E)  a firm getting rid of surplus inventory.

Question 2

Reverse channels may be used to retrieve products from:

Accepted Answer

A)  business customers 
B)  intermediaries 
C)  business customers and intermediaries 
D)  final consumers 
E)  all of these 
A)  business customers 
B)  intermediaries 
C)  business customers and intermediaries 
D)  final consumers 
E)  all of these

Question 3

When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.

Accepted Answer

A)  management contracting 
B)  direct investment 
C)  exporting 
D)  joint venture 
E)  licensing 
A)  management contracting 
B)  direct investment 
C)  exporting 
D)  joint venture 
E)  licensing

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

In administered channel systems, vertical cooperation is achieved by acquiring firms at different levels of activity.

Accepted Answer

A) True 
 B)False

Question 6

Some channel conflict may

Accepted Answer

A)  be inevitable when channel members have different objectives. 
B)  be useful if that is what it takes for customers at the end of the channel to receive better value. 
C)  be avoided when a producer does not sell identical products through different (competing) channels. 
D)  be reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities. 
E)  All of these alternatives are correct. 
A)  be inevitable when channel members have different objectives. 
B)  be useful if that is what it takes for customers at the end of the channel to receive better value. 
C)  be avoided when a producer does not sell identical products through different (competing) channels. 
D)  be reduced if there is a channel captain who thinks about all of the members of a channel and helps to direct their activities. 
E)  All of these alternatives are correct.

Question 7

In a licensing agreement, the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.

Accepted Answer

A) True 
 B)False

Question 8

Direct marketing is

Accepted Answer

A)  personal sales contact between a representative of the company and an individual consumer. 
B)  primarily concerned with the degree of market exposure. 
C)  direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. 
D)  an effort to sell through only one intermediary. 
E)  a strategy that works best when a producer has little working capital. 
A)  personal sales contact between a representative of the company and an individual consumer. 
B)  primarily concerned with the degree of market exposure. 
C)  direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. 
D)  an effort to sell through only one intermediary. 
E)  a strategy that works best when a producer has little working capital.

Question 9

Exporters usually work with specialists who can handle international problems such as customs, taxes, exchange rates, and shipping.

Accepted Answer

A) True 
 B)False

Question 10

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows

Accepted Answer

A)  why discrepancies of quantity occur. 
B)  why both discrepancies of quantity and assortment occur. 
C)  neither discrepancies of assortment or quantity. 
D)  why discrepancies of assortment occur. 
E)  multichannel distribution. 
A)  why discrepancies of quantity occur. 
B)  why both discrepancies of quantity and assortment occur. 
C)  neither discrepancies of assortment or quantity. 
D)  why discrepancies of assortment occur. 
E)  multichannel distribution.

Question 11

Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets. This creates a source of

Accepted Answer

A)  vertical conflict. 
B)  diagonal conflict. 
C)  horizontal conflict. 
D)  parallel conflict. 
E)  placement conflict. 
A)  vertical conflict. 
B)  diagonal conflict. 
C)  horizontal conflict. 
D)  parallel conflict. 
E)  placement conflict.

Question 12

Because of long-run effects, decisions about one of the four Ps is often harder to change than the others. This P is:

Accepted Answer

A)  Product. 
B)  Place. 
C)  Promotion. 
D)  Price. 
A)  Product. 
B)  Place. 
C)  Promotion. 
D)  Price.

Question 13

Which of the following is NOT a Place decision?

Accepted Answer

A)  Types of intermediaries needed. 
B)  Degree of market exposure desired. 
C)  Recruiting, selecting and managing the sales force. 
D)  Type of distribution channel to use. 
E)  Customer service level desired. 
A)  Types of intermediaries needed. 
B)  Degree of market exposure desired. 
C)  Recruiting, selecting and managing the sales force. 
D)  Type of distribution channel to use. 
E)  Customer service level desired.

Question 14

Firms that use direct marketing promotion may or may not use direct distribution.

Accepted Answer

A) True 
 B)False

Question 15

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ___________ distribution.

Accepted Answer

A)  intensive 
B)  operational 
C)  selective 
D)  exclusive 
E)  administered 
A)  intensive 
B)  operational 
C)  selective 
D)  exclusive 
E)  administered

Question 16

The vertical marketing system in which control is maintained via informal cooperation among the channel members is a(n):

Accepted Answer

A)  Administered channel system. 
B)  Corporate channel system. 
C)  Contractual channel system. 
D)  Franchise channel system. 
E)  Channel captain system. 
A)  Administered channel system. 
B)  Corporate channel system. 
C)  Contractual channel system. 
D)  Franchise channel system. 
E)  Channel captain system.

Question 17

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

Accepted Answer

A)  Lower executive overhead. 
B)  Better control of distribution. 
C)  Easier adjustment of discrepancies of quantity and assortment. 
D)  Greater buying power. 
E)  Stable sources of supplies. 
A)  Lower executive overhead. 
B)  Better control of distribution. 
C)  Easier adjustment of discrepancies of quantity and assortment. 
D)  Greater buying power. 
E)  Stable sources of supplies.

Question 18

In _____ channel systems the amount of cooperation among members of the channel is very high.

Accepted Answer

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

Question 19

______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.

Accepted Answer

A)  Licensing 
B)  Management contracting 
C)  Direct investment 
D)  Joint venturing 
E)  Exporting 
A)  Licensing 
B)  Management contracting 
C)  Direct investment 
D)  Joint venturing 
E)  Exporting

Question 20

Digital products cost more to distribute than physical products.

Accepted Answer

A) True 
 B)False

A joint venture is:

Reverse channels may be used to retrieve products from:

When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.

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

In administered channel systems, vertical cooperation is achieved by acquiring firms at different levels of activity.

Some channel conflict may

In a licensing agreement, the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.

Direct marketing is

Exporters usually work with specialists who can handle international problems such as customs, taxes, exchange rates, and shipping.

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows

Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets. This creates a source of

Because of long-run effects, decisions about one of the four Ps is often harder to change than the others. This P is:

Which of the following is NOT a Place decision?

Firms that use direct marketing promotion may or may not use direct distribution.

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ___________ distribution.

The vertical marketing system in which control is maintained via informal cooperation among the channel members is a(n):

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

In _____ channel systems the amount of cooperation among members of the channel is very high.

______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.

Digital products cost more to distribute than physical products.

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

A joint venture is:

Reverse channels may be used to retrieve products from:

When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.

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

In administered channel systems, vertical cooperation is achieved by acquiring firms at different levels of activity.

Some channel conflict may

In a licensing agreement, the licensee takes most of the risk because it must invest some capital to use the right granted by the licensor.

Direct marketing is

Exporters usually work with specialists who can handle international problems such as customs, taxes, exchange rates, and shipping.

A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows

Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets. This creates a source of

Because of long-run effects, decisions about one of the four Ps is often harder to change than the others. This P is:

Which of the following is NOT a Place decision?

Firms that use direct marketing promotion may or may not use direct distribution.

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ___________ distribution.

The vertical marketing system in which control is maintained via informal cooperation among the channel members is a(n):

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

In _____ channel systems the amount of cooperation among members of the channel is very high.

______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.

Digital products cost more to distribute than physical products.

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