Question 1

Which of the following best illustrates adjusting "discrepancies of assortment?"

Accepted Answer

A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 310 million U.S. consumers are served by around 330,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States. 
A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 310 million U.S. consumers are served by around 330,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States.

Question 2

Producers often have to use "multichannel distribution":

Accepted Answer

A)  because they want to sell both direct with a website and indirectly through intermediaries. 
B)  because big retail chains want to deal directly with producers. 
C)  because competitors use a variety of channels. 
D)  because present channel members are doing a poor job. 
E)  All of these are valid reasons for producers to use multichannel distribution. 
A)  because they want to sell both direct with a website and indirectly through intermediaries. 
B)  because big retail chains want to deal directly with producers. 
C)  because competitors use a variety of channels. 
D)  because present channel members are doing a poor job. 
E)  All of these are valid reasons for producers to use multichannel distribution.

Question 3

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

Accepted Answer

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

Question 4

Which of the following statements about direct-to-customer channels is False?

Accepted Answer

A)  Most consumer products are sold via direct-to-customer channels. 
B)  Producers must sometimes use direct-to-customer channels because suitable intermediaries are not available. 
C)  Many business products are sold via direct-to-customer channels. 
D)  Service firms often use direct-to-customer channels. 
E)  "Direct marketing" does not mean that a firm uses direct-to-customer channels. 
A)  Most consumer products are sold via direct-to-customer channels. 
B)  Producers must sometimes use direct-to-customer channels because suitable intermediaries are not available. 
C)  Many business products are sold via direct-to-customer channels. 
D)  Service firms often use direct-to-customer channels. 
E)  "Direct marketing" does not mean that a firm uses direct-to-customer channels.

Question 5

Vertical agreements to limit sales by customer or territory are always illegal, while horizontal agreements may be legal sometimes.

Accepted Answer

A) True 
 B)False

Question 6

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

Accepted Answer

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

Question 7

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Accepted Answer

A) True 
 B)False

Question 8

Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price--because Amazon.com has a lower overhead cost. This is an example of _________ conflict.

Accepted Answer

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

Question 9

A common "product-market commitment" in a channel system helps to eliminate:

Accepted Answer

A)  the need for a channel captain. 
B)  unnecessary and costly duplication of marketing functions. 
C)  all production-oriented channel members. 
D)  competition among different channel systems. 
E)  the need for marketing managers in individual firms. 
A)  the need for a channel captain. 
B)  unnecessary and costly duplication of marketing functions. 
C)  all production-oriented channel members. 
D)  competition among different channel systems. 
E)  the need for marketing managers in individual firms.

Question 10

A good reason for developing or joining a vertical marketing system

Accepted Answer

A)  is that the whole channel focuses on the same target market at the end of the channel and seems to be more effective. 
B)  market competition at each level of the channel eliminates inefficient firms and serves consumers' needs better. 
C)  is that no member of the channel has to bear the costs of the regrouping activities. 
D)  is that no member of the channel has to plan for the whole channel since good decisions at each level run the channel. 
E)  All of these are good reasons for developing or joining a vertical marketing system. 
A)  is that the whole channel focuses on the same target market at the end of the channel and seems to be more effective. 
B)  market competition at each level of the channel eliminates inefficient firms and serves consumers' needs better. 
C)  is that no member of the channel has to bear the costs of the regrouping activities. 
D)  is that no member of the channel has to plan for the whole channel since good decisions at each level run the channel. 
E)  All of these are good reasons for developing or joining a vertical marketing system.

Question 11

Quiet Drive Mufflers are sold only through Car Parts Now retailers. This retailer has only one store in any given geographic area to minimize competition between stores. Quiet Drive Mufflers uses _____ distribution.

Accepted Answer

A)  intensive 
B)  ideal 
C)  selective 
D)  specialized 
E)  exclusive 
A)  intensive 
B)  ideal 
C)  selective 
D)  specialized 
E)  exclusive

Question 12

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Accepted Answer

A)  exclusive distribution. 
B)  selective distribution. 
C)  intensive distribution. 
D)  a vertically integrated distribution system. 
E)  any of these, since every channel member must support a product with promotion. 
A)  exclusive distribution. 
B)  selective distribution. 
C)  intensive distribution. 
D)  a vertically integrated distribution system. 
E)  any of these, since every channel member must support a product with promotion.

Question 13

Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called:

Accepted Answer

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

Question 14

Legal concerns about channel of distribution arrangements are most likely to arise when:

Accepted Answer

A)  a traditional channel system is involved. 
B)  there are horizontal arrangements between firms at the same level of the channel. 
C)  the firm is using intensive distribution. 
D)  a firm uses multichannel distribution to reach its target markets. 
E)  a corporate channel system is involved. 
A)  a traditional channel system is involved. 
B)  there are horizontal arrangements between firms at the same level of the channel. 
C)  the firm is using intensive distribution. 
D)  a firm uses multichannel distribution to reach its target markets. 
E)  a corporate channel system is involved.

Question 15

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 uses a corporate channel of distribution?

Accepted Answer

A)  World Tennis Ball. 
B)  American Tennis Ball. 
C)  National Tennis Ball. 
D)  Both World Tennis Ball and National Tennis Ball use a corporate channel. 
E)  There is not enough information to tell which company uses a corporate channel of distribution. 
A)  World Tennis Ball. 
B)  American Tennis Ball. 
C)  National Tennis Ball. 
D)  Both World Tennis Ball and National Tennis Ball use a corporate channel. 
E)  There is not enough information to tell which company uses a corporate channel of distribution.

Question 16

The lowest cost and lowest risk way to enter a foreign market is through

Accepted Answer

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

Question 17

Multichannel distribution occurs when a producer uses several competing channels to reach the same target market perhaps using several intermediaries in addition to selling directly.

Accepted Answer

A) True 
 B)False

Question 18

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

Accepted Answer

A) True 
 B)False

Question 19

With the Internet, even very small specialized firms can draw customers from all over the world.

Accepted Answer

A) True 
 B)False

Question 20

Vertical marketing systems are growing in the U.S., but declining in the rest of the world.

Accepted Answer

A) True 
 B)False

Which of the following best illustrates adjusting "discrepancies of assortment?"

Producers often have to use "multichannel distribution":

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

Which of the following statements about direct-to-customer channels is False?

Vertical agreements to limit sales by customer or territory are always illegal, while horizontal agreements may be legal sometimes.

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price--because Amazon.com has a lower overhead cost. This is an example of _________ conflict.

A common "product-market commitment" in a channel system helps to eliminate:

A good reason for developing or joining a vertical marketing system

Quiet Drive Mufflers are sold only through Car Parts Now retailers. This retailer has only one store in any given geographic area to minimize competition between stores. Quiet Drive Mufflers uses _____ distribution.

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Legal concerns about channel of distribution arrangements are most likely to arise when:

The lowest cost and lowest risk way to enter a foreign market is through

Multichannel distribution occurs when a producer uses several competing channels to reach the same target market perhaps using several intermediaries in addition to selling directly.

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

With the Internet, even very small specialized firms can draw customers from all over the world.

Vertical marketing systems are growing in the U.S., but declining in the rest of the world.

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 best illustrates adjusting "discrepancies of assortment?"

Producers often have to use "multichannel distribution":

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

Which of the following statements about direct-to-customer channels is False?

Vertical agreements to limit sales by customer or territory are always illegal, while horizontal agreements may be legal sometimes.

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors, not company employees.

Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price--because Amazon.com has a lower overhead cost. This is an example of _________ conflict.

A common "product-market commitment" in a channel system helps to eliminate:

A good reason for developing or joining a vertical marketing system

Quiet Drive Mufflers are sold only through Car Parts Now retailers. This retailer has only one store in any given geographic area to minimize competition between stores. Quiet Drive Mufflers uses _____ distribution.

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

Legal concerns about channel of distribution arrangements are most likely to arise when:

The lowest cost and lowest risk way to enter a foreign market is through

Multichannel distribution occurs when a producer uses several competing channels to reach the same target market perhaps using several intermediaries in addition to selling directly.

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

With the Internet, even very small specialized firms can draw customers from all over the world.

Vertical marketing systems are growing in the U.S., but declining in the rest of the world.

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