Question 1

_____ are the fastest growing method of retailing.

Accepted Answer

A)  Direct sales 
B)  Vending machines 
C)  Catalogs and direct mail 
D)  Electronic exchanges

Question 2

A computer manufacturer sells computers through a variety of methods which include telemarketing,catalog selling,cable selling,and online selling.Which of the following channels is the manufacturer using?

Accepted Answer

A)  Horizontal channel 
B)  Direct channel 
C)  Peer-to-peer marketing 
D)  Administered marketing

Question 3

As in the consumer markets,_____ are used in organizational markets when manufacturers do not wish to have their own sales force.

Accepted Answer

A)  wholesalers 
B)  distributors 
C)  agents 
D)  retailers

Question 4

Which of the following companies is best suited for using electronic exchanges to market products that customers would ordinarily want to examine before purchase?

Accepted Answer

A)  A small company selling dairy products and specialty candies. 
B)  A small entrepreneurial venture like a bakery. 
C)  A large perfume manufacturer with low brand equity. 
D)  A large company selling tablet computers from market leaders.

Question 5

_____ vertical marketing systems involve single ownership of two or more levels of a channel.

Accepted Answer

A)  Administered 
B)  Contractual 
C)  Structured 
D)  Corporate

Question 6

_____ involve(s)a manufacturer purchasing wholesalers or retailers.

Accepted Answer

A)  Forward integration 
B)  Contractual marketing systems 
C)  A manufacturer-sponsored voluntary chain 
D)  A franchising program

Question 7

Which of the following types of retail operations does the longstanding Sears' motto,"Sears has everything," exemplify?

Accepted Answer

A)  Specialty stores 
B)  Convenience stores 
C)  Department stores 
D)  Internet stores

Question 8

Which of the following is true about a contractual vertical marketing system?

Accepted Answer

A)  It unites independent retailers for the purposes of pool buying to improve their competitive position. 
B)  It has a strong channel leader at or near the end of the channel. 
C)  It is exemplified by the Dunkin' donuts franchise system. 
D)  It involves single ownership of two or more levels of a channel.

Question 9

Which of the following is NOT a type of vertical marketing system?

Accepted Answer

A)  Structured system 
B)  Administered system 
C)  Corporate system 
D)  Contractual system

Question 10

_____ compete with other retailers on the basis of offering lower prices on products in their large assortments.

Accepted Answer

A)  Warehouse clubs 
B)  Convenience stores 
C)  Department stores 
D)  Supermarkets

Question 11

The dependence in administered vertical marketing systems can result from the existence of a strong:

Accepted Answer

A)  buyer preference. 
B)  corporate system. 
C)  channel leader. 
D)  distributor network.

Question 12

If a product has low unit value and high frequency of purchase with customer expectation of convenience,it is most likely to require a(n)_____ form of distribution.

Accepted Answer

A)  focused 
B)  intensive 
C)  exclusive 
D)  selective

Question 13

Which of the following parameters is an inventory carrying cost?

Accepted Answer

A)  Transportation 
B)  Order processing 
C)  Obsolescence and deterioration 
D)  Materials handling

Question 14

Which of the following views of distribution channels recognizes that much can be gained by developing long-term commitments and harmony among channel members?

Accepted Answer

A)  Channel integration 
B)  Vertical marketing 
C)  Relationship marketing 
D)  Conflict resolution

Question 15

Which of the following is an example of forward integration?

Accepted Answer

A)  A chain of coffee shops acquiring a coffee producer. 
B)  A car manufacturer acquiring an automobile spare parts manufacturer. 
C)  A cigarette manufacturer buying a convenience store. 
D)  A laptop manufacturer buying a computer chip maker.

Question 16

A manufacturer utilizing an exclusive form of distribution coverage:

Accepted Answer

A)  gains the maximum degree of control over wholesalers and retailers. 
B)  attempts to gain exposure through as many wholesalers and retailers as possible. 
C)  severely limits distribution; intermediaries are provided exclusive rights within a territory. 
D)  limits the use of intermediaries to the ones believed to be the best available in the geographic area.

Question 17

Which of the following is an example of forward integration?

Accepted Answer

A)  A manufacturer purchasing wholesalers. 
B)  A wholesaler purchasing manufacturers. 
C)  A retailer purchasing wholesalers. 
D)  A retailer purchasing manufacturers.

Question 18

If a product requires certain specialized selling effort or investment in unique facilities or large inventories,the _____ distribution arrangement is usually selected.

Accepted Answer

A)  exclusive 
B)  geodemographic 
C)  intensive 
D)  selective

Question 19

The manufacturer of which of the following products is most likely to use selective distribution?

Accepted Answer

A)  Paper clips 
B)  Microwave oven 
C)  Nail clippers 
D)  Aerated drinks

Question 20

Which of the following is a reason for organizations to use the direct channel for distributing organizational goods?

Accepted Answer

A)  Structure of most organizational markets often have relatively few and small customers. 
B)  Manufacturers' lack of economic power for hiring intermediaries. 
C)  Their markets are geographically dispersed. 
D)  Many organizational products need a great deal of presale and postsale services.

Exam 10: Distribution Strategy

_____ are the fastest growing method of retailing.

A computer manufacturer sells computers through a variety of methods which include telemarketing,catalog selling,cable selling,and online selling.Which of the following channels is the manufacturer using?

As in the consumer markets,_____ are used in organizational markets when manufacturers do not wish to have their own sales force.

Which of the following companies is best suited for using electronic exchanges to market products that customers would ordinarily want to examine before purchase?

_____ vertical marketing systems involve single ownership of two or more levels of a channel.

_____ involve(s) a manufacturer purchasing wholesalers or retailers.

Which of the following types of retail operations does the longstanding Sears' motto,"Sears has everything," exemplify?

Which of the following is true about a contractual vertical marketing system?

Which of the following is NOT a type of vertical marketing system?

_____ compete with other retailers on the basis of offering lower prices on products in their large assortments.

The dependence in administered vertical marketing systems can result from the existence of a strong:

If a product has low unit value and high frequency of purchase with customer expectation of convenience,it is most likely to require a(n) _____ form of distribution.

Which of the following parameters is an inventory carrying cost?

Which of the following views of distribution channels recognizes that much can be gained by developing long-term commitments and harmony among channel members?

Which of the following is an example of forward integration?

A manufacturer utilizing an exclusive form of distribution coverage:

Which of the following is an example of forward integration?

If a product requires certain specialized selling effort or investment in unique facilities or large inventories,the _____ distribution arrangement is usually selected.

The manufacturer of which of the following products is most likely to use selective distribution?

Which of the following is a reason for organizations to use the direct channel for distributing organizational goods?