Question 1

Which of the following statements about direct channel systems is FALSE?

Accepted Answer

A)  There is no reliance on independent intermediaries whose objectives may be different from the producer's objectives. 
B)  Suitable intermediaries are always available even when they're needed at the last minute. 
C)  The producer can be more aware of changes in customer attitudes. 
D)  Direct channels are more typical with business products than with consumer products. 
E)  None of these statements about direct channel systems is FALSE. 
A)  There is no reliance on independent intermediaries whose objectives may be different from the producer's objectives. 
B)  Suitable intermediaries are always available even when they're needed at the last minute. 
C)  The producer can be more aware of changes in customer attitudes. 
D)  Direct channels are more typical with business products than with consumer products. 
E)  None of these statements about direct channel systems is FALSE.

Question 2

A channel system in which the various members agree by contract to cooperate with each other is called a(an) ______________ system.

Accepted Answer

A)  multichannel distribution 
B)  contractual channel 
C)  traditional channel 
D)  administered channel 
E)  vertically integrated channel 
A)  multichannel distribution 
B)  contractual channel 
C)  traditional channel 
D)  administered channel 
E)  vertically integrated channel

Question 3

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Accepted Answer

A) True 
 B)False

Question 4

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

Accepted Answer

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

Question 5

According to the text, it's best for the "channel captain" to be a producer rather than a wholesaler or retailer.

Accepted Answer

A) True 
 B)False

Question 6

Intermediaries are needed MOST when the desired degree of market exposure is:

Accepted Answer

A)  selective. 
B)  intensive. 
C)  exclusive. 
D)  administered. 
E)  none of these is a good answer. 
A)  selective. 
B)  intensive. 
C)  exclusive. 
D)  administered. 
E)  none of these is a good answer.

Question 7

The owners of all the Chrysler auto dealerships in a large metropolitan area have an informal meeting during a golf outing. During the meeting, they agree to limit their orders of a new model of automobile that has received excellent reviews from the trade press for its styling and handling characteristics. Restricting orders will permit the dealers to sell these models at a price that will be at or above the manufacturer's suggested retail price for the vehicle. As a result, the dealers will make more profit on each vehicle sold due to the high demand for the new model. This type of agreement would be viewed by the courts as:

Accepted Answer

A)  Horizontal collusion that is illegal. 
B)  Horizontal collusion that is legal. 
C)  Vertical collusion that is legal. 
D)  Vertical collusion that is illegal. 
E)  An exclusive distribution arrangement that is legal. 
A)  Horizontal collusion that is illegal. 
B)  Horizontal collusion that is legal. 
C)  Vertical collusion that is legal. 
D)  Vertical collusion that is illegal. 
E)  An exclusive distribution arrangement that is legal.

Question 8

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

Accepted Answer

A) True 
 B)False

Question 9

A "channel captain"

Accepted Answer

A)  might be any member of the channel (that is, at any level in the channel). 
B)  views the members of the channel as a unit. 
C)  should help to make the channel more efficient by reducing conflict. 
D)  all of these alternatives are correct. 
A)  might be any member of the channel (that is, at any level in the channel). 
B)  views the members of the channel as a unit. 
C)  should help to make the channel more efficient by reducing conflict. 
D)  all of these alternatives are correct.

Question 10

Many business products are sold direct, but hardly any services are.

Accepted Answer

A) True 
 B)False

Question 11

Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

Accepted Answer

A) True 
 B)False

Question 12

When Renault Motor Co. builds a new production facility in Venezuela and it is the sole owner of the facility, this is an example of a(n) _________ investment approach.

Accepted Answer

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

Question 13

Use this information for question that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors.
1) WTB sells its products through four regional distributors who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.
2) American Tennis Ball (ATB) is a competitor that sells through two distributors--each with half the country. The distributors then sell through 6 sporting goods wholesalers, and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores). ATB and its channel make little effort to work together. However, because of a relatively low level of competition between the distributors, the wholesalers, or the retail stores, each member of the channel gives the product special attention.
3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that handle its products. NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.
Which of the following appears to best describe ATB's channel arrangements?

Accepted Answer

A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Global distribution 
E)  Direct distribution 
A)  Intensive distribution 
B)  Exclusive distribution 
C)  Selective distribution 
D)  Global distribution 
E)  Direct distribution

Question 14

Which of the following is NOT one of the degrees of market exposure?

Accepted Answer

A)  Selective distribution 
B)  Multichannel distribution 
C)  Intensive distribution 
D)  Exclusive distribution 
E)  None of these, i.e. all are degrees of market exposure. 
A)  Selective distribution 
B)  Multichannel distribution 
C)  Intensive distribution 
D)  Exclusive distribution 
E)  None of these, i.e. all are degrees of market exposure.

Question 15

INDIRECT channels are probably a better choice than direct channels when:

Accepted Answer

A)  the firm has limited financial resources. 
B)  the product is a consumer product instead of a business product. 
C)  target customers already have established buying patterns for where to search for the product. 
D)  retailers are already conveniently located where consumers shop. 
E)  all of these make INDIRECT channels a better choice. 
A)  the firm has limited financial resources. 
B)  the product is a consumer product instead of a business product. 
C)  target customers already have established buying patterns for where to search for the product. 
D)  retailers are already conveniently located where consumers shop. 
E)  all of these make INDIRECT channels a better choice.

Question 16

Intermediaries in indirect channels of distribution:

Accepted Answer

A)  Often perform functions that producers cannot perform efficiently by themselves. 
B)  Do not provide additional convenience to consumers. 
C)  Increase the need for producers to make large investments in distribution facilities and personnel. 
D)  Make it necessary for producers to carry more inventories. 
E)  None of these alternatives is correct. 
A)  Often perform functions that producers cannot perform efficiently by themselves. 
B)  Do not provide additional convenience to consumers. 
C)  Increase the need for producers to make large investments in distribution facilities and personnel. 
D)  Make it necessary for producers to carry more inventories. 
E)  None of these alternatives is correct.

Question 17

The vertical marketing system that typically has the greatest amount of cooperation among channel members is a(n):

Accepted Answer

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

Question 18

Vertical marketing systems account for a majority of U.S. retail sales.

Accepted Answer

A) True 
 B)False

Question 19

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a:

Accepted Answer

A)  Channel director. 
B)  Channel coordinator. 
C)  Channel captain. 
D)  Channel ombudsman. 
E)  Channel troubleshooter. 
A)  Channel director. 
B)  Channel coordinator. 
C)  Channel captain. 
D)  Channel ombudsman. 
E)  Channel troubleshooter.

Question 20

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

Accepted Answer

A) True 
 B)False

Which of the following statements about direct channel systems is FALSE?

A channel system in which the various members agree by contract to cooperate with each other is called a(an) ______________ system.

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

According to the text, it's best for the "channel captain" to be a producer rather than a wholesaler or retailer.

Intermediaries are needed MOST when the desired degree of market exposure is:

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

A "channel captain"

Many business products are sold direct, but hardly any services are.

Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

When Renault Motor Co. builds a new production facility in Venezuela and it is the sole owner of the facility, this is an example of a(n) _________ investment approach.

Which of the following is NOT one of the degrees of market exposure?

INDIRECT channels are probably a better choice than direct channels when:

Intermediaries in indirect channels of distribution:

The vertical marketing system that typically has the greatest amount of cooperation among channel members is a(n):

Vertical marketing systems account for a majority of U.S. retail sales.

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a:

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

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

Which of the following statements about direct channel systems is FALSE?

A channel system in which the various members agree by contract to cooperate with each other is called a(an) ______________ system.

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

According to the text, it's best for the "channel captain" to be a producer rather than a wholesaler or retailer.

Intermediaries are needed MOST when the desired degree of market exposure is:

Of the five basic kinds of involvement in international marketing, exporting is the least permanent.

A "channel captain"

Many business products are sold direct, but hardly any services are.

Intensive distribution covers the broad area of market exposure between selective and exclusive distribution.

When Renault Motor Co. builds a new production facility in Venezuela and it is the sole owner of the facility, this is an example of a(n) _________ investment approach.

Which of the following is NOT one of the degrees of market exposure?

INDIRECT channels are probably a better choice than direct channels when:

Intermediaries in indirect channels of distribution:

The vertical marketing system that typically has the greatest amount of cooperation among channel members is a(n):

Vertical marketing systems account for a majority of U.S. retail sales.

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a:

One way for a producer to reduce conflict with channel partners is to offer different products in each different channel.

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