Question 1

All of the following are regrouping activities EXCEPT

Accepted Answer

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

Question 2

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

Accepted Answer

A) True 
 B)False

Question 3

The text suggests that a "channel captain" should be:

Accepted Answer

A)  a strong wholesaler. 
B)  a market-oriented producer. 
C)  a large retailer. 
D)  any of these--i.e. whoever can provide leadership. 
A)  a strong wholesaler. 
B)  a market-oriented producer. 
C)  a large retailer. 
D)  any of these--i.e. whoever can provide leadership.

Question 4

In an indirect channel of distribution, both vertical conflict and horizontal conflict may arise.

Accepted Answer

A) True 
 B)False

Question 5

Intensive distribution:

Accepted Answer

A)  gives a retailer more incentive to promote a product than he would have with exclusive distribution. 
B)  is not very likely to be used in combination with multichannel distribution. 
C)  is more likely to be used with relatively high priced products than with low priced products. 
D)  is often used for convenience products and business supplies. 
E)  none of these alternatives is correct. 
A)  gives a retailer more incentive to promote a product than he would have with exclusive distribution. 
B)  is not very likely to be used in combination with multichannel distribution. 
C)  is more likely to be used with relatively high priced products than with low priced products. 
D)  is often used for convenience products and business supplies. 
E)  none of these alternatives is correct.

Question 6

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of:

Accepted Answer

A)  a tying contract. 
B)  an administered channel system. 
C)  internal expansion. 
D)  vertical integration. 
E)  horizontal integration. 
A)  a tying contract. 
B)  an administered channel system. 
C)  internal expansion. 
D)  vertical integration. 
E)  horizontal integration.

Question 7

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.

Accepted Answer

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

Question 8

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  contractual channel 
B)  dual distribution 
C)  traditional channel 
D)  administered channel 
E)  franchising 
A)  contractual channel 
B)  dual distribution 
C)  traditional channel 
D)  administered channel 
E)  franchising

Question 10

A direct-to-customer channel

Accepted Answer

A)  includes a retailer but not a wholesaler. 
B)  usually helps the producer to be more aware of changes in final customer attitudes. 
C)  eliminates some of the marketing functions. 
D)  is typical to reach final consumer markets. 
E)  is most suitable when a large number of transactions are required in the channel or when orders are smaller. 
A)  includes a retailer but not a wholesaler. 
B)  usually helps the producer to be more aware of changes in final customer attitudes. 
C)  eliminates some of the marketing functions. 
D)  is typical to reach final consumer markets. 
E)  is most suitable when a large number of transactions are required in the channel or when orders are smaller.

Question 11

Assorting means separating products into grades and qualities desired by different target markets.

Accepted Answer

A) True 
 B)False

Question 12

Direct marketing is primarily concerned with Promotion, not Place.

Accepted Answer

A) True 
 B)False

Question 13

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

Accepted Answer

A) True 
 B)False

Question 14

____ conflict occurs between firms at the same level in the channel of distribution.

Accepted Answer

A)  Vertical 
B)  Diagonal 
C)  Horizontal 
D)  Parallel 
E)  Cyclical 
A)  Vertical 
B)  Diagonal 
C)  Horizontal 
D)  Parallel 
E)  Cyclical

Question 15

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Accepted Answer

A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal 
A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal

Question 16

____ conflict occurs between firms at different levels in the channel of distribution.

Accepted Answer

A)  Vertical 
B)  Diagonal 
C)  Horizontal 
D)  Parallel 
E)  Cyclical 
A)  Vertical 
B)  Diagonal 
C)  Horizontal 
D)  Parallel 
E)  Cyclical

Question 17

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

Accepted Answer

A) True 
 B)False

Question 18

In a joint venture, a domestic firm enters into a partnership with a foreign firm.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT a benefit that an intermediary is likely to provide for producer-suppliers?

Accepted Answer

A)  reduce credit risk 
B)  reduce the need to store inventory 
C)  reduce the need for marketing research 
D)  reduce the need for working capital 
E)  All of these are likely benefits provided to suppliers. 
A)  reduce credit risk 
B)  reduce the need to store inventory 
C)  reduce the need for marketing research 
D)  reduce the need for working capital 
E)  All of these are likely benefits provided to suppliers.

Question 20

Many firms prefer to distribute directly to the final customer or consumer because they

Accepted Answer

A)  want to control the whole marketing job. 
B)  believe they can serve target customers at a lower cost. 
C)  think they can do the work more effectively than intermediaries. 
D)  can use the Internet to make direct distribution easier. 
E)  all of these are reasons why firms prefer direct distribution. 
A)  want to control the whole marketing job. 
B)  believe they can serve target customers at a lower cost. 
C)  think they can do the work more effectively than intermediaries. 
D)  can use the Internet to make direct distribution easier. 
E)  all of these are reasons why firms prefer direct distribution.

All of the following are regrouping activities EXCEPT

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

The text suggests that a "channel captain" should be:

In an indirect channel of distribution, both vertical conflict and horizontal conflict may arise.

Intensive distribution:

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of:

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

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

A direct-to-customer channel

Assorting means separating products into grades and qualities desired by different target markets.

Direct marketing is primarily concerned with Promotion, not Place.

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

____ conflict occurs between firms at the same level in the channel of distribution.

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

____ conflict occurs between firms at different levels in the channel of distribution.

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

In a joint venture, a domestic firm enters into a partnership with a foreign firm.

Which of the following is NOT a benefit that an intermediary is likely to provide for producer-suppliers?

Many firms prefer to distribute directly to the final customer or consumer because they

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

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Exam 10: Place and Development of Channel Systems

All of the following are regrouping activities EXCEPT

Discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products.

The text suggests that a "channel captain" should be:

In an indirect channel of distribution, both vertical conflict and horizontal conflict may arise.

Intensive distribution:

If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of:

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.

A manufacturer may be forced to use multichannel distribution because a big retail chain wants to deal directly with it instead of wholesalers.

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

A direct-to-customer channel

Assorting means separating products into grades and qualities desired by different target markets.

Direct marketing is primarily concerned with Promotion, not Place.

Direct-to-customer channels are rarely used in business markets because they are much more expensive and less efficient than using intermediaries.

____ conflict occurs between firms at the same level in the channel of distribution.

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

____ conflict occurs between firms at different levels in the channel of distribution.

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

In a joint venture, a domestic firm enters into a partnership with a foreign firm.

Which of the following is NOT a benefit that an intermediary is likely to provide for producer-suppliers?

Many firms prefer to distribute directly to the final customer or consumer because they

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