Question 1

A disadvantage of direct-to-customer channels is that they

Accepted Answer

A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of these is a disadvantage of direct-to-customer channels. 
A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of these is a disadvantage of direct-to-customer channels.

Question 2

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

Accepted Answer

A)  Discrepancy of assortment 
B)  Discrepancy of information 
C)  Discrepancy of quantity 
D)  Discrepancy of quality 
E)  Discrepancy of image 
A)  Discrepancy of assortment 
B)  Discrepancy of information 
C)  Discrepancy of quantity 
D)  Discrepancy of quality 
E)  Discrepancy of image

Question 3

Exclusive distribution is selling through only one intermediary in each geographic area.

Accepted Answer

A) True 
 B)False

Question 4

A channel of distribution:

Accepted Answer

A)  is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B)  is only needed when products must be stored. 
C)  must include one or more intermediaries. 
D)  is only needed when products are sold indirectly. 
E)  None of these alternatives is a good answer. 
A)  is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. 
B)  is only needed when products must be stored. 
C)  must include one or more intermediaries. 
D)  is only needed when products are sold indirectly. 
E)  None of these alternatives is a good answer.

Question 5

Which of the following is typically the lowest risk approach for moving into international markets?

Accepted Answer

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

Question 6

Intensive distribution is selling through only those intermediaries who will give the product special attention.

Accepted Answer

A) True 
 B)False

Question 7

A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

Accepted Answer

A) True 
 B)False

Question 8

When Amazon.com collects products from many small producers, the company is involved in _____.

Accepted Answer

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

Question 9

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.
If American Tennis Ball adds more retail outlets, which of the following would help it to manage channel conflict:

Accepted Answer

A)  assign the channel captain role to the largest retail chain. 
B)  sell a different brand of tennis ball through the new retailers than what it sells through current retailers. 
C)  select new retail outlets that target the same customers as those who buy from its current retailers. 
D)  choose new retailers in the same geographic market as its current retailers but who sell at lower prices. 
E)  drop its national advertising and leave it to retailers to promote its tennis balls. 
A)  assign the channel captain role to the largest retail chain. 
B)  sell a different brand of tennis ball through the new retailers than what it sells through current retailers. 
C)  select new retail outlets that target the same customers as those who buy from its current retailers. 
D)  choose new retailers in the same geographic market as its current retailers but who sell at lower prices. 
E)  drop its national advertising and leave it to retailers to promote its tennis balls.

Question 10

Which of the following statements about Place decisions is True?

Accepted Answer

A)  Product classes are not related to Place objectives. 
B)  The product life cycle is not related to Place objectives. 
C)  Place decisions are short-term decisions that are easy to change. 
D)  Different market segments may require separate Place arrangements. 
E)  All of these statements about Place decisions are True. 
A)  Product classes are not related to Place objectives. 
B)  The product life cycle is not related to Place objectives. 
C)  Place decisions are short-term decisions that are easy to change. 
D)  Different market segments may require separate Place arrangements. 
E)  All of these statements about Place decisions are True.

Question 11

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

Accepted Answer

A) True 
 B)False

Question 12

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 describes WTB's channel arrangements?

Accepted Answer

A)  Intensive distribution 
B)  Corporate channel system 
C)  Exclusive distribution 
D)  Traditional channel system 
E)  Reverse channels 
A)  Intensive distribution 
B)  Corporate channel system 
C)  Exclusive distribution 
D)  Traditional channel system 
E)  Reverse channels

Question 13

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

Accepted Answer

A)  bulk-breaking. 
B)  sorting. 
C)  accumulating. 
D)  assorting. 
E)  discrepancy of quantity. 
A)  bulk-breaking. 
B)  sorting. 
C)  accumulating. 
D)  assorting. 
E)  discrepancy of quantity.

Question 14

Any contractual channel system--by definition--is also an administered channel system.

Accepted Answer

A) True 
 B)False

Question 15

In a licensing agreement, the licensee

Accepted Answer

A)  makes no initial investment to get started. 
B)  does most of the marketing strategy planning for the markets it is licensed to serve. 
C)  has more control over marketing than other approaches for entering international markets. 
D)  assumes almost no risk in a foreign market. 
E)  does not pay any fee or royalties to the licensor. 
A)  makes no initial investment to get started. 
B)  does most of the marketing strategy planning for the markets it is licensed to serve. 
C)  has more control over marketing than other approaches for entering international markets. 
D)  assumes almost no risk in a foreign market. 
E)  does not pay any fee or royalties to the licensor.

Question 16

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 these companies appears to operate as a channel captain?

Accepted Answer

A)  WTB 
B)  ATB 
C)  NTB 
D)  All of the companies appear to be channel captains 
E)  None of the companies is a channel captain 
A)  WTB 
B)  ATB 
C)  NTB 
D)  All of the companies appear to be channel captains 
E)  None of the companies is a channel captain

Question 17

Rizzo Shoes sells through ________ channel system. Rizzo has informal agreements with its wholesalers and retailers -- they cooperate pretty well by placing orders, and sharing inventory and sales information over a computer network.

Accepted Answer

A)  a contractual 
B)  a traditional 
C)  a power leadership 
D)  a corporate 
E)  an administered 
A)  a contractual 
B)  a traditional 
C)  a power leadership 
D)  a corporate 
E)  an administered

Question 18

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Accepted Answer

A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation. 
A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation.

Question 19

Traditional channel systems:

Accepted Answer

A)  Are characterized by strong ties between channel members. 
B)  Exhibit little cooperation between channel members. 
C)  Have channel members that look out for each other's best interest. 
D)  Have members that go to great lengths to cooperate with each other. 
E)  Usually feature a strong product-market commitment that is shared by all of the members of the channel. 
A)  Are characterized by strong ties between channel members. 
B)  Exhibit little cooperation between channel members. 
C)  Have channel members that look out for each other's best interest. 
D)  Have members that go to great lengths to cooperate with each other. 
E)  Usually feature a strong product-market commitment that is shared by all of the members of the channel.

Question 20

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

Accepted Answer

A) True 
 B)False

A disadvantage of direct-to-customer channels is that they

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

Exclusive distribution is selling through only one intermediary in each geographic area.

A channel of distribution:

Which of the following is typically the lowest risk approach for moving into international markets?

Intensive distribution is selling through only those intermediaries who will give the product special attention.

A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

When Amazon.com collects products from many small producers, the company is involved in _____.

Which of the following statements about Place decisions is True?

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

Any contractual channel system--by definition--is also an administered channel system.

In a licensing agreement, the licensee

Rizzo Shoes sells through ________ channel system. Rizzo has informal agreements with its wholesalers and retailers -- they cooperate pretty well by placing orders, and sharing inventory and sales information over a computer network.

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Traditional channel systems:

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

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 disadvantage of direct-to-customer channels is that they

ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

Exclusive distribution is selling through only one intermediary in each geographic area.

A channel of distribution:

Which of the following is typically the lowest risk approach for moving into international markets?

Intensive distribution is selling through only those intermediaries who will give the product special attention.

A new channel is more likely to prompt conflict if it focuses on segments not already served by current channels.

When Amazon.com collects products from many small producers, the company is involved in _____.

Which of the following statements about Place decisions is True?

Reverse channels may provide a way to retrieve unwanted products from intermediaries, business customers, or final consumers.

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

Any contractual channel system--by definition--is also an administered channel system.

In a licensing agreement, the licensee

Rizzo Shoes sells through ________ channel system. Rizzo has informal agreements with its wholesalers and retailers -- they cooperate pretty well by placing orders, and sharing inventory and sales information over a computer network.

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Traditional channel systems:

The "80/20 rule" is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.

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