Question 1

Strategy "Place" decisions would NOT include:

Accepted Answer

A)  type of physical distribution facilities. 
B)  type of channel of distribution. 
C)  degree of market exposure desired. 
D)  distribution customer service level. 
E)  how to train wholesalers' salespeople. 
A)  type of physical distribution facilities. 
B)  type of channel of distribution. 
C)  degree of market exposure desired. 
D)  distribution customer service level. 
E)  how to train wholesalers' salespeople.

Question 2

Which of the following is NOT a likely advantage of vertical integration?

Accepted Answer

A)  Lower capital requirements. 
B)  Lower executive overhead. 
C)  Better control of distribution. 
D)  Better quality control. 
E)  Greater buying power. 
A)  Lower capital requirements. 
B)  Lower executive overhead. 
C)  Better control of distribution. 
D)  Better quality control. 
E)  Greater buying power.

Question 3

Every morning, Sycamore Dairy picks up milk which farmers have "milked" that morning. The dairy processes the milk and separates the cream from the milk. Some of the cream is made into butter and packaged in various sizes. The milk and remaining cream are blended into various products, sealed in pint, quart and half-gallon containers, and delivered to supermarkets in the quantities and assortments they want. The dairy is providing what regrouping activity?

Accepted Answer

A)  Assorting 
B)  Accumulating 
C)  Sorting 
D)  Bulk-breaking 
E)  All of these regrouping activities are being provided by Sycamore Dairy. 
A)  Assorting 
B)  Accumulating 
C)  Sorting 
D)  Bulk-breaking 
E)  All of these regrouping activities are being provided by Sycamore Dairy.

Question 4

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 wholesalers and more retail outlets, this is likely to

Accepted Answer

A)  create horizontal channel conflict. 
B)  lead to vertical channel conflict. 
C)  require that the largest wholesaler take over the channel captain role. 
D)  increase trust and cooperation in the channel. 
E)  prompt both vertical and horizontal channel conflict. 
A)  create horizontal channel conflict. 
B)  lead to vertical channel conflict. 
C)  require that the largest wholesaler take over the channel captain role. 
D)  increase trust and cooperation in the channel. 
E)  prompt both vertical and horizontal channel conflict.

Question 5

The Internet is making it possible for firms to reach customers that were impossible to reach before.

Accepted Answer

A) True 
 B)False

Question 6

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

Accepted Answer

A)  Place orders that are too small. 
B)  Make too many returns. 
C)  Request too much service. 
D)  Have poor credit. 
E)  All of these alternatives are correct. 
A)  Place orders that are too small. 
B)  Make too many returns. 
C)  Request too much service. 
D)  Have poor credit. 
E)  All of these alternatives are correct.

Question 7

Choosing an INDIRECT channel probably will be better than a direct channel if a producer wants to:

Accepted Answer

A)  provide special technical service. 
B)  make it easier to do marketing research. 
C)  be more sensitive to coming changes in customer needs and attitudes. 
D)  obtain a very aggressive selling effort. 
E)  adjust large discrepancies of quantity and assortment. 
A)  provide special technical service. 
B)  make it easier to do marketing research. 
C)  be more sensitive to coming changes in customer needs and attitudes. 
D)  obtain a very aggressive selling effort. 
E)  adjust large discrepancies of quantity and assortment.

Question 8

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

Accepted Answer

A)  marketing 
B)  selling 
C)  distribution 
D)  servicing 
E)  pricing 
A)  marketing 
B)  selling 
C)  distribution 
D)  servicing 
E)  pricing

Question 9

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

Accepted Answer

A) True 
 B)False

Question 10

Licensing, in international marketing,

Accepted Answer

A)  refers to foreign intermediaries agreeing to sell products produced in this country. 
B)  requires a producer to pay a licensing fee to the country where it wants to sell its products. 
C)  increases the risk that a company's production facilities will be taken over by the foreign country. 
D)  means a company selling the right to use a process, trademark, patent, or other right for a fee or royalty. 
E)  None of these alternatives is correct. 
A)  refers to foreign intermediaries agreeing to sell products produced in this country. 
B)  requires a producer to pay a licensing fee to the country where it wants to sell its products. 
C)  increases the risk that a company's production facilities will be taken over by the foreign country. 
D)  means a company selling the right to use a process, trademark, patent, or other right for a fee or royalty. 
E)  None of these alternatives is correct.

Question 11

If a firm's involvement in international marketing is limited to managing others' production facilities, it is using:

Accepted Answer

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

Question 12

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Accepted Answer

A)  Monopoly. 
B)  Vertical integration. 
C)  Intertype competition. 
D)  A contractual channel system. 
E)  An administered channel system. 
A)  Monopoly. 
B)  Vertical integration. 
C)  Intertype competition. 
D)  A contractual channel system. 
E)  An administered channel system.

Question 13

Assorting activities involve putting together a variety of products to give a target market what it wants.

Accepted Answer

A) True 
 B)False

Question 14

Costco is a warehouse store that sells groceries, household items, and business products. Purchase quantities tend to be larger than in traditional stores that serve final consumers. For example, soft drinks are only sold in 24-can cases, not in 6-packs. Coffee is sold in 3-pound cans instead of one-pound foil packs. Which regrouping activity is Costco shifting to the consumer?

Accepted Answer

A)  Accumulating. 
B)  Adjusting discrepancies. 
C)  Assorting. 
D)  Bulk-breaking. 
E)  Sorting. 
A)  Accumulating. 
B)  Adjusting discrepancies. 
C)  Assorting. 
D)  Bulk-breaking. 
E)  Sorting.

Question 15

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

Accepted Answer

A) True 
 B)False

Question 16

A large food retailer acquiring a cheese factory is an example of:

Accepted Answer

A)  dual distribution. 
B)  vertical integration. 
C)  a tying contract. 
D)  horizontal integration. 
E)  internal expansion. 
A)  dual distribution. 
B)  vertical integration. 
C)  a tying contract. 
D)  horizontal integration. 
E)  internal expansion.

Question 17

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:

Accepted Answer

A)  dual distribution. 
B)  reverse distribution. 
C)  a contractual channel system. 
D)  vertical integration. 
E)  accumulating. 
A)  dual distribution. 
B)  reverse distribution. 
C)  a contractual channel system. 
D)  vertical integration. 
E)  accumulating.

Question 18

Josh Adams runs a large cattle farm in Texas. In order to take advantage of higher prices for beef in Europe compared to the United States, he has started selling cattle overseas by using an agent wholesaler who specializes in finding European customers for U.S. firms. He ships the cattle to Europe by water transport. Josh is involved in:

Accepted Answer

A)  Exporting. 
B)  Management contracting. 
C)  Licensing. 
D)  Joint venturing. 
E)  Franchising. 
A)  Exporting. 
B)  Management contracting. 
C)  Licensing. 
D)  Joint venturing. 
E)  Franchising.

Question 19

With respect to consumer products, which of the following is the most common system for distributing consumer products in the U.S.?

Accepted Answer

A)  Direct channel systems. 
B)  Vertical marketing systems. 
C)  Traditional channel systems. 
D)  Horizontal marketing systems. 
E)  None of these is a good answer. 
A)  Direct channel systems. 
B)  Vertical marketing systems. 
C)  Traditional channel systems. 
D)  Horizontal marketing systems. 
E)  None of these is a good answer.

Question 20

"Selective distribution" means selling through:

Accepted Answer

A)  retailers but not wholesalers. 
B)  multichannel distribution. 
C)  all responsible and suitable wholesalers. 
D)  only those wholesalers and retailers who give the product special attention. 
E)  only one wholesaler or retailer in each geographic area. 
A)  retailers but not wholesalers. 
B)  multichannel distribution. 
C)  all responsible and suitable wholesalers. 
D)  only those wholesalers and retailers who give the product special attention. 
E)  only one wholesaler or retailer in each geographic area.

Strategy "Place" decisions would NOT include:

Which of the following is NOT a likely advantage of vertical integration?

The Internet is making it possible for firms to reach customers that were impossible to reach before.

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

Choosing an INDIRECT channel probably will be better than a direct channel if a producer wants to:

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

Licensing, in international marketing,

If a firm's involvement in international marketing is limited to managing others' production facilities, it is using:

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Assorting activities involve putting together a variety of products to give a target market what it wants.

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

A large food retailer acquiring a cheese factory is an example of:

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:

With respect to consumer products, which of the following is the most common system for distributing consumer products in the U.S.?

"Selective distribution" means selling through:

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

Strategy "Place" decisions would NOT include:

Which of the following is NOT a likely advantage of vertical integration?

The Internet is making it possible for firms to reach customers that were impossible to reach before.

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

Choosing an INDIRECT channel probably will be better than a direct channel if a producer wants to:

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products.

Licensing, in international marketing,

If a firm's involvement in international marketing is limited to managing others' production facilities, it is using:

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

Assorting activities involve putting together a variety of products to give a target market what it wants.

The most important reason to use indirect channels is if intermediaries can help serve customers better and at lower cost.

A large food retailer acquiring a cheese factory is an example of:

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:

With respect to consumer products, which of the following is the most common system for distributing consumer products in the U.S.?

"Selective distribution" means selling through:

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